Make in India Certificate Classification - Benefits Vary with Classification

Introduction 

For businesses looking to gain advantage from India's push for self-sufficiency in manufacturing and production, the Make in India Certificate is crucial. Several incentives are offered based on the classification of the certificate under this initiative, launched by the Government of India to promote domestic manufacturing. By understanding these classifications and their associated benefits, businesses can maximize their potential.

What is a Make in India Certificate? 

The Make in India Certificate is a mandatory requirement for Original Equipment Manufacturers (OEM) to participate in government tenders and public procurements on portals such as GEM, NICSI, or through direct application. It ensures that the concerned OEM has manufactured the products procured primarily in India, to encourage the government’s flagship Make in India initiative. In other words, the Make in India Certificate allows OEMs to participate directly in the bidding procedures of government contracts and tenders within a certain purchase value as prescribed by the latest amendment of the PPP-MII order 2017.

Classification of Make in India Certificate 

Make in India Certificate classified into three main classes based on the percentage of the domestic content or input used in the product and service. These classes can be clear by this below mentioned table: 

Benefits according to the Classifications 

Conclusion 

Businesses seeking to establish strong ties with the Indian market are well advised to obtain the Make in India Certificate. The classification system can help businesses gain maximum benefits if they understand it and increase local content in their products. There are more advantages for suppliers in Class-I, but there are still opportunities for growth for suppliers in Class-II. On the other hand, non-local suppliers are encouraged to enhance their local manufacturing capabilities in order to qualify for future incentives.

Frequently Asked Questions 

1) Who can apply for a Make in India Certificate? 

Any Company or manufacturing unit operating in India uses minimum domestic content requirement can apply for Make in India Certificate.

2) How can I check my classification under the Make in India Certificate?

The percentage of local content in your product determines your classification. Certification by the organization and verification by government authorities determines the classification.

3) Can a non-local supplier become a Class-I or Class-II local supplier?

Yes, by adding more domestic sourcing and manufacturing content to meet the required percentage you can become a Class-I or Class-II local supplier.

4) Is the Make in India Certificate mandatory for government tenders?

No, it is not mandatory, but having Class-I and Class-II suppliers certificates get more preferences in many government procurement projects.