Private consultancy · Not a Government website
SoftTenderTender & GeM Assistance · A unit of Soft Trade Enterprises
What's New

Make in India preference in tenders

Class-I, Class-II and non-local suppliers, and why local content matters.

5 min read · Last updated: 10 October 2026

Under the Public Procurement (Preference to Make in India) Order, government buyers give preference to suppliers whose goods, services or works have more local content.

Supplier classes

ClassLocal content
Class-I local supplier50% or more
Class-II local supplierMore than 20% but less than 50%
Non-local supplier20% or less

Nodal ministries can set different minimum local content for specific items, so the tender's own clause decides.

Purchase preference

  • Local suppliers get purchase preference over others.
  • The margin of purchase preference is 20%: a local supplier's price may be up to 20% above L1 and still get preference, under the order's matching rules.
  • For procurements with an estimated value below ₹200 crore, ordinarily only Class-I and Class-II local suppliers can bid.

What you need to do

  • Work out your local content honestly, including value added in India.
  • Give the declaration or certificate in the format the tender asks for.
  • On GeM, set the local content correctly in your product listing.
A false local content declaration can lead to rejection, debarment and other action. Get your calculation checked if you are unsure.

Sources

SoftTender is a private consultancy. We are not affiliated with GeM, CPPP, NSIC or any Government department. Registration on official portals such as GeM is free; we charge only for our assistance service. We do not guarantee that any tender will be awarded.

Related guides

Call WhatsApp us