What is a Make in India Certificate

What is a Make in India Certificate?
The Government of India introduced the Make in India initiative to promote domestic manufacturing and encourage companies to increase local value addition within India.
To implement this objective in public procurement, the government issued the Public Procurement (Preference to Make in India) Order, 2017 (PPP-MII) through the Department for Promotion of Industry and Internal Trade (DPIIT).
Under this framework, bidders participating in government tenders are required to declare the percentage of local content contained in their product or service. This declaration when verified by a professional takes shape of Make in India Certificate.
Thus , a Make in India certificate is a professional certification confirming the percentage of local content contained in a product or service offered in a government tender.
This certification is used by procurement authorities to determine whether a bidder qualifies as a local supplier under the PPP-MII framework.
The certificate generally includes:

•  Local content percentage calculation
•  Cost allocation methodology
•  Supplier classification under PPP-MII
•  Supporting documentation
•  Certification issued by a Chartered Accountant or Cost Auditor

 1. Who Issues a Make in India Certificate?
A Make in India Local Content Certificate is generally issued by practicing Chartered Accountant. based on the cost structure and local value addition in the product or service offered in a government tender.
 2. When is a Make in India Certificate Required?
A Make in India certificate is generally required when companies participate in government tenders issued by:

•  Central Government Ministries
•  Public Sector Undertakings (PSUs)
•  Government Departments
•  State Government procurement authorities

These tenders require bidders to declare the percentage of local content in their products or services. The Make in India certificate acts as supporting documentation for this declaration.

 3. Classification of Suppliers under PPP-MII
 1. Class I Local Supplier
Suppliers whose products contain 50% or more local content.
 2. Class II Local Supplier
Suppliers whose products contain 20% to 50% local content.
 3. Non‑Local Supplier
Suppliers whose products contain less than 20% local content.

 4. Benefits of a Make in India Certificate
Obtaining a properly structured Make in India certificate provides several advantages when participating in government procurement. The policy aims to encourage domestic manufacturing by providing procurement preference to suppliers who demonstrate sufficient local value addition in India.
 1. Preference in Procurement from Class-I Local Suppliers
Under the PPP-MII order, government procurement entities are required to give preference to Class-I Local Suppliers whenever sufficient local capacity and competition exists.
In many sectors where local manufacturing capability has been notified, procurement authorities must prioritize sourcing from Class-I Local Suppliers.
This means that suppliers who achieve 50% or more local content in their products may receive priority over other bidders.

 2. Purchase Price Preference for Local Suppliers
One of the most important benefits of the Make in India certification is the Purchase Price Preference (PPP) available to Class-I Local Suppliers in government procurement.
Under the PPP-MII framework, if a Class-I Local Supplier participates in a tender and its quoted price is within 20% of the lowest bidder (L1), the local supplier may be given an opportunity to match the L1 price and win the contract.

 3. Eligibility for Domestic-Only Tenders
For tenders below ₹200 crore, government departments are generally restricted from issuing global tenders, which increases opportunities for domestic suppliers.

 5. How Local Content is Calculated
Local content is generally calculated using the following formula:
Local Content (%) = (Value of Domestic Components / Total Value of Product) × 100
However, determining local content is often more complex in practice.
Several factors must be carefully analyzed, including:

•  Imported components and materials
•  Licensing and royalty payments
•  Engineering and R&D costs
•  Software development costs
•  Indian manpower and service costs
•  Local manufacturing and assembly expenses

Various notifications issued by DPIIT and sectoral ministries may also specify which costs can be included or excluded when calculating local content.
For this reason, the calculation frequently requires professional judgment and regulatory interpretation.

 6. Timeline for Issuing a Make in India Certificate
If the necessary documentation is readily available, the Make in India certificate can usually be issued within two to three working days.
However, the timeline may vary depending on:
 1. Complexity of the product structure
 2. Availability of cost and accounting records
 3. Sector-specific compliance requirements
Early preparation of documentation helps ensure faster certification.

 7. Documents Required for Make in India Certificate
To obtain a Make in India certificate, companies generally need to provide certain supporting information.
Below is an illustrative list of commonly required documents.
Business Registration Documents
 1. PAN
 2. GST Registration
 3. Certificate of Incorporation
 4. Udyam / MSME Registration (if applicable)

Product Details
 1. Product name and description
 2. Technical specifications

Cost Breakdown
 1. Indian material costs
 2. Imported components
 3. Labour and manpower costs
 4. Local services used in production

Supporting Bills and Invoices

• Raw material invoices
• Vendor invoices
• Utility or service invoices
• Summary of employee and labour costs related to production
• Self‑declaration or affidavit confirming accuracy of information

Note: This list is illustrative. The exact documentation may vary depending on tender requirements and sector‑specific rules issued by the relevant nodal ministry.
 8. Legal Framework Governing Make in India Certification
Make in India certification operates under the Public Procurement (Preference to Make in India) Order, 2017, issued by DPIIT.
The framework has been amended several times to strengthen compliance requirements and clarify the method of determining local content.
The regulatory framework typically includes:
 1. Public Procurement (Preference to Make in India) Order, 2017
 2. Amendments issued by DPIIT
 3. General Financial Rules (GFR) 2017
 4. Sector-specific procurement orders issued by nodal ministries
Different industries such as electronics, telecom, cybersecurity, and defence may have additional sector-specific procurement rules issued by their respective ministries.

 9. Important Misconceptions about Make in India Certificate
 1. The Certificate is Issued by the Government
The certificate is self‑certified by the bidder and validated by a professional such as a Practicing Chartered Accountant or Statutory Auditor or Cost Auditor.
 2. The Certificate Allows Use of the Make in India Logo
Obtaining a certificate does not automatically grant permission to use the Make in India logo.

 3. Incorrect Local Content Declaration Has No Impact
 A. Incorrect declarations may lead to:
 1. Debarment from government tenders for up to two years or huge Penalties
 2. Competitors filing formal complaints leading to legal challenges through civil proceedings
 10. Difference Between Make in India Certificate and Make in India Logo
Many businesses assume that obtaining a Make in India certificate allows them to use the Make in India logo on their products or marketing material. However, these two concepts are different and serve different purposes.
The Make in India logo, represented by the lion symbol, is a branding element associated with the Government of India’s Make in India initiative.
Use of this logo is generally meant for promotional or branding purposes and is not automatically granted by obtaining a Make in India local content certificate.
Companies wishing to use the logo may need to follow separate guidelines or approvals depending on the context of use.
YKG Global Make in India Certification and Advisory
YKG Global has a deep understanding of the PPP-MII regulatory framework, along with experience working with global technology and manufacturing companies. With strong expertise in cost structuring and regulatory interpretation, YKG Global is well positioned to issue Make in India Local Content Certificates based on appropriate documentation and professional evaluation.
Services include:
 1. Regulatory assessment of applicable procurement orders
 2. Local content computation and cost modelling
 3. Certification support through qualified professionals
 4. Documentation preparation to withstand verification by authorities