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Guide · Make in India · Built in India
Make in India procurement policy asks public buyers to give eligibility and preference to suppliers whose goods carry more value added in India. For rail, metro and defence electronics, that means asking every supplier for documented local content, where the product is designed and manufactured, and how quality, traceability and lifecycle support are handled. Envision TechWorks designs, manufactures and tests production-ready electronics in an ISO 9001:2015 facility in India — Built in India / Make in India.
The short answer
Government of India procurement policy encourages Make in India by linking eligibility and preference in public tenders to local content — the value added in India. The Department for Promotion of Industry and Internal Trade (DPIIT) sets this out in the Public Procurement (Preference to Make in India) Order, 2017, as revised on 16 September 2020; it applies to ministries, departments, their attached and autonomous bodies and Government companies. In defence, the Ministry of Defence's Defence Acquisition Procedure gives its highest priority to equipment that is indigenously designed, developed and manufactured. For buyers of rail, metro and defence electronics, the practical effect is that local content, its documentation and where the work is done become part of supplier evaluation.
Policy basics
General points from the DPIIT Order as revised on 16 September 2020 and from defence acquisition policy. Always follow the specific tender document, which must state in advance the local content requirement, margin of purchase preference and procedure that apply.
The value added in India: the total value of the item procured (excluding net domestic indirect taxes) minus the value of its imported content (including customs duties), as a percentage of the total value — unless the nodal ministry prescribes otherwise.
Suppliers are classed by the local content of what they offer. The Order's default minimums are 50% for a Class-I and 20% for a Class-II local supplier, and nodal ministries may notify higher thresholds for specific items. Below the Class-II level, a supplier is a non-local supplier.
Except where a global tender enquiry is issued, only Class-I and Class-II local suppliers are eligible to bid, and Class-I local suppliers receive purchase preference in the manner the Order sets out. Where a nodal ministry has notified sufficient local capacity and competition, only Class-I local suppliers may bid.
The Ministry of Defence's Defence Acquisition Procedure gives the highest priority to the Buy (Indian-IDDM) category — indigenously designed, developed and manufactured — and the Ministry publishes positive indigenisation lists of items to be procured from indigenous sources.
Documentation
Under the Order, local suppliers indicate the percentage of local content at the time of bidding, self-certify that the item offered meets the requirement, and give the location(s) where the local value addition is made. For higher-value procurements, a certificate of local content is also required from the statutory or cost auditor (for companies) or from a practising cost or chartered accountant. Procuring entities may verify declarations, and a false declaration breaches the Code of Integrity under the General Financial Rules. For buyers, that makes design and manufacturing location, quality records and traceability part of the evidence trail.
Checklist
Use these questions in RFQs and supplier evaluations for rail, metro and defence electronics. Match each answer to what your tender document actually requires.
Local content: can the supplier state the percentage of local content for the item offered and provide the self-certification the tender asks for?
Auditor certificate: for higher-value tenders, can they provide a local content certificate from a statutory or cost auditor, or a practising cost or chartered accountant?
Design and manufacturing location: where is the product designed, and at which location(s) is it manufactured, assembled and tested?
Quality system: is manufacturing carried out under a certified quality management system such as ISO 9001:2015?
Traceability: can components, assemblies and test records be traced to each delivered unit?
Standards and approvals: which standards is the product built to, and what is the actual status of each approval — held, or still in progress?
Lifecycle support: who provides spares, AMC and field support after delivery, and from where?
Related
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See Defence EMS product details →Share your requirement and tender context for rail, metro or defence electronics so the team can scope a production-ready solution — Built in India.
Contact Envision TechWorks →FAQ
It is a Government of India order issued by DPIIT in 2017 and revised on 16 September 2020. It encourages Make in India by giving local suppliers eligibility and purchase preference in public procurement, based on the local content of the goods, services or works they offer.
Under the revised Order, a Class-I local supplier offers items that meet the Class-I minimum local content (50% by default), and a Class-II local supplier meets the Class-II minimum (20% by default) but not the Class-I level. Nodal ministries may notify higher thresholds, so check the tender document.
Bidders indicate their percentage of local content, self-certify that the item meets the requirement and give the location(s) where the local value addition is made. Higher-value procurements also require a certificate from the statutory or cost auditor, or a practising cost or chartered accountant.
The Ministry of Defence's Defence Acquisition Procedure gives the highest priority to the Buy (Indian-IDDM) category — equipment indigenously designed, developed and manufactured — and positive indigenisation lists name items to be procured from indigenous sources. Requirements vary by programme, so follow the RFP.
Envision TechWorks products are designed, manufactured and tested in an ISO 9001:2015 facility in India, with in-circuit and functional test, AOI and X-ray inspection. They are production-ready and Built in India under Make in India.
Share your requirement and tender context for rail, metro or defence electronics, and the team will scope a production-ready solution — Built in India.