The Make in India initiative, launched in 2014, is a flagship program by the Government of India to promote local businesses and manufacturers to transform the country into a global design and manufacturing hub.
It was not just a push for manufacturing but was launched with a mission to foster innovation, enhance skill development, generate employment opportunities, and create world-class infrastructure while encouraging investments in the manufacturing sector in India.
In alignment with this vision, the GeM (Government e-Marketplace) Portal plays a pivotal role by promoting procurement from local manufacturers, small businesses, and start-ups as kind of a preferable requirement in the process.
Let us try to understand how the Make in India initiative integrates with the GeM Portal and the numerous benefits it brings to businesses and the nation.
Make in India is a strategic initiative to:
- Boost Local Manufacturing: Promote indigenous manufacturing industries to reduce dependency on imports and commercial implications.
- Create Jobs and a Skilled Workforce: Generate employment opportunities for India's growing workforce and build upon native skillset.
- Encourage Investments: Attract both domestic and foreign investors to strengthen the manufacturing sector in India.
- Enhance Export Competitiveness: Develop products with global standards to increase India's export share in the world.
- Improved Infrastructure: With a strong focus on enhancing infrastructure such as roads, ports, and power supply, it is reducing logistical bottlenecks.
Preference to Make In India in Public Procurement?#
The Government of India introduced the Public Procurement (Preference to Make in India) [PPP-MII] Order 2017, through the Department for Promotion of Industry and Internal Trade (DPIIT), under Order No. P-45021/2/2017-B.E.-II dated June 15, 2017.
This initiative has undergone several revisions, reflected in subsequent orders dated May 28, 2018, May 29, 2019, June 4, 2020, September 16, 2020, and July 19, 2024.
The order aims to provide government support to the Make in India initiative by promoting the manufacturing and production of goods, services, and works within the country, and reducing the dependency on exports as much as possible and thereby fostering economic growth through increased income and employment opportunities.
It has been issued under the authority of Rule 153 (iii) of the General Financial Rules 2017 to ensure its effective implementation.
Classes of Local Suppliers#
- Class-I Local supplier - means a supplier or service provider, whose goods, services or works offered for procurement, have local content equal to or more than 50%.
- Class-II Local supplier - a supplier or service provider, whose goods, services or works offered for procurement, have local content of more than 20% but less than 50%.
- Non-local supplier - a supplier or service provider, whose goods, services or works offered for procurement, have local content less than or equal to 20%.
Non-local suppliers shall also be eligible to bid along with 'Class-I local supplier' and 'Class-II local' in the procurement of all goods, services or works, and with estimated value of purchases less than Rs. 200 crore.
GeM Portal: Supporting the Make in India Initiative#
The Government e-Marketplace (GeM) is an online procurement platform that facilitates transparent and efficient procurement by government organizations. It ensures that government buyers meet their procurement needs while supporting the goals of the Make in India initiative.
Make in India Features on GeM#
Local Supplier Preference:
- The GeM portal incorporates the Public Procurement (Preference to Make in India) policy. This policy mandates a preference for local suppliers for products with a minimum percentage of local content.
- Sellers can self-certify the percentage of local content in their products.
Filters for Made-in-India Products:
- Buyers can use filters to specifically search for products manufactured in India, ensuring procurement aligns with the Make in India objectives.
- Bidding Advantage for Local Manufacturers:
- Local manufacturers get a competitive edge during tendering. For instance, a price preference is given if their products meet the local content requirement thresholds.
Increased Participation for MSMEs and Startups:
- MSMEs and startups, often pivotal to the Make in India vision, are encouraged to participate in tenders, with benefits like exemptions from certain criteria.
Benefits of Make in India on the GeM Portal#
Below are the key benefits and policies that empower local businesses:
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Cost Efficiency for Government Buyers: With local suppliers, procurement costs related to imports (e.g., transportation, duties) are minimized.
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Participation in Make in India (MII) Reserved Bids The GeM Portal provides opportunities for businesses to participate in bids specifically reserved under the Make in India (MII) framework. These reserved bids are tailored to encourage participation from local suppliers, fostering growth in domestic manufacturing and service sectors.
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Preference for Make in India Products (For Bids Below ₹200 Crore) In line with the Public Procurement (Preference to Make in India) [PPP-MII] Order 2017, preference is given to Class-I Local Suppliers in government procurements. Key provisions include:
Eligibility Criteria:
- Class-I Local Suppliers are those meeting the minimum local content requirements specified in the bid documents.
- Class-II Local Suppliers may also be eligible for certain provisions but do not receive purchase preferences like Class-I suppliers.
- Non-local suppliers, as defined in the MII Order dated June 4, 2020, are not eligible to participate in such bids unless they qualify as Micro or Small Enterprises under applicable policies.
Purchase Preference:
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To avail purchase preferences, bidders must upload a certificate from the OEM (Original Equipment Manufacturer) specifying:
- Percentage of local content in the product.
- Details of locations where the local value addition is made.
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For bids exceeding ₹10 crore, the local content declaration must be certified:
- By a Statutory Auditor or Cost Auditor (for OEMs structured as companies).
- By a Practicing Cost Accountant or Chartered Accountant (for OEMs not structured as companies).
How to Leverage Make in India Benefits on GeM?#
- Register as a Seller: Ensure your business is registered on GeM and update your profile. You can learn more about GeM Seller Registration here.
- Self-Certify Local Content: Accurately declare the percentage of local content in your products to qualify for preferences.
Want to Generate "Make In India" Certificate for Free?. Click Here
- Stay Updated on Policies: Regularly check for updates on GeM's procurement policies to keep yourself aware and maximize your benefits by complying with eligibility criteria.
At the time of listing products, you can mention the Local Content Percentage and choose whether you want MII Preference or Not. Additionally, you have the option to the Make in India local supplier class accordingly.
Conclusion#
The Make in India initiative, supported by the GeM Portal, is a transformative step toward building a self-reliant India. It not only empowers local businesses but also ensures the government procures high-quality products while promoting economic growth.
Just like the Make in India initiative supports local manufacturers, we are here to support businesses in on boarding and jump starting their the GeM Portal journey to and growing their B2G (Business-to-Government) operations. If you need any assistance or guidance in navigating the GeM Portal or leveraging its opportunities, please feel free to contact us.
Let's work together to strengthen your business and contribute to India's journey toward becoming a global manufacturing powerhouse.
