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Make in India certification: Initiative for MSMEs

The Make in India initiative was launched with a primary objective of attracting diverse commercial sectors from across the globe to establish their manufacturing operations in India and subsequently export their products worldwide.

 

In line with this vision, the MII undertaking has become a compulsory requirement for Micro, Small, and Medium Enterprises (MSMEs) to participate in government tenders. The government actively supports and encourages local manufacturers and service providers through various schemes and policies, making it imperative for MSMEs to embrace the Make in India initiative.

 

Aside from promoting foreign investment, the Make in India program has brought numerous advantages and benefits to the Indian economy. With significant investments from businesses worldwide and their subsequent success, India has emerged as a central hub for manufacturing enterprises. This has contributed to economic growth, job creation, and a boost in the country’s global standing as a thriving manufacturing destination.

What is the Make in India (MII) Certification?

Make in India certification is a crucial requirement for local Original Equipment Manufacturers (OEMs) that Micro, Small, and Medium Enterprises (MSMEs) must fulfill to ensure that their products are primarily manufactured within India.

 

Compliance with this requirement is essential for MSMEs in line with recent endeavors aimed at promoting domestic manufacturing and reinforcing the Indian industrial sector. By obtaining the Make in India certification, MSMEs can demonstrate their commitment to supporting and contributing to India’s manufacturing prowess, fostering economic growth and national development.

Why do MSMEs require Make in India Certification

According to the recently revised circular, P-45021/2/2017-PP (BE-II), only ‘Class-I local suppliers’ and ‘Class-II local suppliers’ are eligible to bid in the procurement process for all goods, services, or works, with an estimated value of purchases less than Rs. 200 crores.

 

As a result, it has now become mandatory for Original Equipment Manufacturers (OEMs) to submit a Make in India (MII) undertaking to participate in government tenders and public procurements, including on platforms like the Government e-Marketplace (GeM) or National Informatics Centre Services Incorporated (NICSI).

 

This requirement ensures that only local suppliers who comply with the Make in India initiative can partake in these procurement processes, aligning with the government’s efforts to boost domestic manufacturing and support Indian industries.

Classification of MII local suppliers as per DPIIT

As per the revised PPP-MII Order dated 04.06.2020 issued by the Department for Promotion of Industry and Internal Trade (DPIIT), the classes of Local suppliers based on local content are as follows:

  1. Class-I Local Supplier: This category includes suppliers whose products have a high percentage of Indian materials used for manufacturing. These suppliers demonstrate a substantial contribution to the local content in their products.
  2. Class-II Local Supplier: Suppliers falling under this category also utilize Indian materials in their manufacturing processes, albeit at a comparatively lower percentage than Class-I Local Suppliers. However, their products still meet the criteria for being considered locally sourced.

The concept of local content emphasizes the utilization of Indian materials in the production of goods, promoting domestic manufacturing and supporting the ‘Make in India’ initiative.

Class-1 local supplier

A vendor or service provider will be considered a class-1 local supplier or vendor if the local content percentage of their goods, services, or works submitted for procurement is equal to or greater than 50%.

Class-2 local supplier

A vendor or services provider whose items, services, or works are available for procurement has a local content of more than 20% but less than 50%. This means that the vendor or services provider uses more than 20% but less than 50% local materials, labor, or other resources in its products or services.

Non-local Supplier

A supplier or service provider is considered to have a local content of less than or equal to 20% of the total if the goods, services, or works being offered for procurement are sourced from within the country.

Fee for Make in India certification

The professional fee for an urgent CA-certified MII certificate is ₹9,999, while a regular certificate costs around ₹4,999.

Documents required for Make in India certification

The following documents are needed to prepare the Make in India (MII) certificate:

  1. Details of components that have been used in the making of a product
  2. Monthly manufacturing capacity
  3. GSTIN certificate
  4. Gem OEM certificate
  5. Purchase bill for the supplier
  6. Purchase bill of machines, tools & other critical equipment used  in manufacturing process
  7. monthly utilization capacity
  8. Manufacturing floor diagram

Procedure for the preparation of MII certificate

  1. Product details and documentation
  2. Breakdown of raw materials used in manufacturing
  3. Calculation of the percentage of Indian and overseas components
  4. Verified and certified by authorized Chartered Accountants (CAs)

How to Get MII certificate?

You can get your CA-certified make-in-India certificate in 3 steps with us

  1. Contact us 
  2. Provide necessary details
  3. Issuance of MII certificate 

Benefits of Make in India certification

The Make in India certificate helps Indian manufacturers to promote their products as being locally made, which increases their credibility in the market. The following are the benefits of the MII certificate for GeM:

  • Increased credibility and brand value
  • Access to government tenders
  • Reduced compliance burden
  • Enhanced market reach
  • Improved customer satisfaction
  • MII-certified vendors will be given preference during L1 bidding.
  • MII-certified vendors will be given preference in bids and tenders.
  • Export benefits will be provided to Make in India producers.
  • Products made in India will be showcased during events as part of the Make in India initiative.

These measures will help to build the image of brand India and self-reliance, and will also benefit the Make in India initiative.

FAQs

To verify the percentage of Indian components in a product, the local supplier or seller must provide a self-certification of the product’s local components (also known as a Make in India or MII certificate) in a prescribed format. The “self-certification of local content” is the essence of the “Make in India” certification for GeM.

According to the DPIIT, vendors whose products contain more than 50% Indian components are classified as Class 1 suppliers.

Non-local suppliers are not eligible for the L1 bidding process. However, they may participate if the tender requirements necessitate overseas manufacturers.

You can get an MII certificate in 3 simple steps

  1. Contact us 
  2. Provide necessary details 
  3. Get the MII certificate verified by CA within the due date

The fee for obtaining an MII certificate is around ₹ 4,999 only.

Yes, according to the revised circular from the Department for Promotion of Industry and Internal Trade (DPIIT), all local vendors are required to provide a Make in India undertaking in order to participate in government tenders.

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