Make in India Certificate

The Make in India Certificate is a document that shows a product is made or manufactured in India. This certification is awarded to businesses that comply with the guidelines of the 'Make in India' initiative, launched by the Indian Government in 2014 to promote local manufacturing and support the Indian economy.

This certificate helps companies show that their products are made in India, which can be useful for getting government projects, tenders, or for building trust with Indian customers. These declarations are often checked and verified by third-party agencies like QCI (Quality Council of India) or other approved agencies, especially when applying for government projects or tenders.

Note: The Make in India Certificate is not an official certificate issued by the Government of India. Instead, businesses submit self-declarations or local content certificates under the PPP-MII policy (Public Procurement – Make in India).

To get the Make in India Certificate under Public Procurement Policy (PPP-MII), a business must manufacture its products in India. Based on how much of the product is made using Indian materials, labour, or processes, the government has divided suppliers into three main categories:

1. Class-I Local Supplier

This category includes businesses that use 50% or more Indian content in their products.

• They are given first preference in government contracts and tenders.
• Most public sector projects encourage purchases only from Class-I suppliers.
• To qualify, businesses must show proper records like bills, raw material sources, and manufacturing details.

2. Class-II Local Supplier

These are businesses that use 20% to less than 50% Indian content in their products.

• They are allowed to participate in government tenders, but only if Class-I suppliers are not available or don’t meet the requirement.
• They must still prove their Indian content with the right documents and certificates.

3. Non-Local Supplier

Suppliers who use less than 20% Indian content are considered non-local.

• They are usually not eligible for benefits under the Make in India program.
• In most cases, they cannot bid for government tenders focused on Indian-made goods.

Note:

• For contracts below Rs. 10 crores, businesses can give a self-certificate.
• For contracts above Rs. 10 crores, they need a certificate from a statutory auditor or cost auditor.

To apply for the Make in India Certificate, you need to know how much of your product is made using Indian materials and processes. This is called your Local Content Percentage. It helps decide whether you are a Class-I, Class-II, or Non-Local Supplier.

Formula for Local Content Calculation

The Government uses a simple formula to find out the local content:

Local Content (%) = (Value of Indian Parts ÷ Total Product Cost) × 100

• Value of Indian Parts: It includes all raw materials, parts, labor, and services used in India to make the product.
• Total Product Cost: This is the full cost of making the product, including both Indian and foreign parts.

Note: This calculation is done as per DPIIT guidelines under the Public Procurement (Preference to Make in India) Order 2017.

Example:

Let’s say the total cost of your product is Rs. 1,00,000.

Out of this, Rs. 60,000 is spent on Indian parts and labour.

Local Content = (60,000 ÷ 1,00,000) × 100 = 60%

This means your product has 60% Indian content, and you qualify as a Class-I Local Supplier.

Understanding what qualifies as 'Value Added in India' is key to calculating your local content accurately. This value shows how much work, material, and cost go into making your product within India. The higher the Indian value-added content, the more benefits you get under the Make in India policy.

1. Cost of Indian Raw Materials

All raw materials produced, mined, or sourced within India are included.

Examples:

• Steel, aluminum, plastics, or chemicals are made in Indian factories.
• Grains, cotton, herbs, or oils grown in India.
• Minerals and ores mined in India.

Note: Imported raw materials do not count toward value added.

2. Manufacturing, Processing & Assembling in India

Any physical work done on the product inside India adds to the value.

This includes:

• Assembling components
• Cutting, welding, moulding
• Painting or coating
• Packing and final testing

Note: Even if the parts are imported, the work done on them in India counts as value added.

3. Indian Labour and Wages

Wages paid to Indian employees and workers, including daily wage workers, factory staff, engineers, or supervisors, are counted.

This includes:

• Full-time or contract-based workers
• Payroll expenses and contractor payments

4. Cost of Indian Services Used

Services hired from Indian companies or professionals can be added.

Examples include:

• IT services and software development
• Product designing and engineering
• Logistics, warehousing, and quality testing
• Legal and accounting services

5. Indian Overhead and Utility Costs

Any business expenses paid in India that are part of the product’s cost can be included, such as:

• Electricity, water, and gas are used in factories
• Rent or lease of Indian offices or units
• Machinery maintenance
• Telephone, internet, and admin charges

Note: Local content calculations are subject to audit. Providing incorrect information can lead to disqualification or being blacklisted from government tenders.

To apply for a Make in India Certificate, businesses must submit certain documents that prove their product is genuinely manufactured in India.

1. Company Registration Proof

You need to show that your business is officially registered in India. You can submit any of the following:

• GST Registration Certificate
• Udyam/MSME Registration
• Company Incorporation Certificate (CIN)
• PAN Card of the business

2. Product Details

Provide complete information about the product you want to certify, including:

• Product name and model
• Technical specifications
• Product photographs
• Product brochure (if available)

3. Manufacturing Process Report

Give a clear explanation of how the product is made in India. This should include:

• Step-by-step manufacturing or assembly process
• Location of manufacturing unit(s)
• List of machines and tools used
• Flowchart of production (optional but useful)

4. Cost Breakdown and Local Content Calculation

You must submit a cost sheet showing how much of the product is made using Indian inputs. Include:

• Cost of Indian raw materials
• Labour costs within India
• Cost of Indian services (design, testing, packaging, etc.)
• Total product cost
• Final local content percentage with formula

5. Bills and Invoices

Submit copies of bills to prove the purchase of Indian materials and services. These may include:

• Purchase invoices for raw materials
• Salary slips or wage records of workers
• Bills from Indian service providers (transport, logistics, etc.)
• Utility bills (electricity, water used in production)

6. Employee and Labour Details

Details of Indian employees involved in production, such as:

• Number of workers
• Types of roles (skilled/unskilled)
• Salary or wages paid
• Employment contracts (if available)

7. Utility and Overhead Proof

These documents support your claim of production being done in India:

• Electricity and water bills of the factory
• Rent agreement or ownership proof of the manufacturing unit
• Internet, telephone, or other operational bills

8. Self-Declaration or Affidavit

You must provide a signed declaration stating that:

• All information provided is true
• The product meets the required local content
• All supporting documents are genuine

This declaration should be signed by the company’s authorized signatory and may need to be notarized, depending on the agency.

Obtaining your Make in India certificate involves a clear, multi-step process to verify your product's local content. This helps prove that your product is made in India and meets the government’s requirements.

Step 1: Choose the Product You Want to Certify

Start by identifying the specific product or group of products for which you want the certificate. Make sure these products are genuinely manufactured, assembled, or processed in India. You can apply for one product or multiple products, depending on your business operations.

Step 2: Understand the Local Content Requirement

Before applying, it's important to know how much of your product is made in India. This is called your Local Content Percentage. The government has set three categories based on this:

• Class-I Local Supplier: 50% or more of the product is made in India.
• Class-II Local Supplier: Between 20% and 50% is made in India.
• Non-Local Supplier: Less than 20% is made in India (not eligible for benefits).

You must meet at least 20% local content to qualify for the certificate.

Step 3: Calculate the Local Content

To find out your local content, you need to calculate the percentage of Indian value added to your product. Use this simple formula:

Local Content (%) = (Value of Indian Content ÷ Total Cost of Product) × 100

In Indian content, include:

• Cost of Indian raw materials
• Labour and wages paid in India
• Local manufacturing or assembly costs
• Indian service expenses like design, transport, testing, etc.

Be sure to exclude any imported materials, foreign labour, or overseas services from the calculation.

Step 4: Prepare the Necessary Documents

Once you have your local content percentage, gather all the documents needed to support your application. These include:

• Business registration proof (GST, PAN, MSME/Udyam certificate).
• Product details such as description, specifications, and photos.
• Detailed cost sheet showing Indian and total costs.
• Invoices or bills of Indian raw materials and services used.
• Proof of Indian labour, such as salary slips or contractor agreements.
• Utility bills like electricity or water are used in manufacturing.
• A declaration or affidavit stating all details provided are correct.

Make sure all documents are accurate and up-to-date, as they will be verified by the certifying agency.

Step 5: Fill Out the Application Form

Get the official Make in India Certificate application form from an authorized body such as the Quality Council of India (QCI) or another approved certification agency. Fill in your business details, product name, manufacturing location, and calculated local content percentage. Double-check all information before submitting.

Step 6: Submit the Application to the Agency

Once your form and documents are ready, submit them to the certifying authority. Some agencies allow online submissions through their portal, while others may require offline/physical submission. Follow the instructions given by the specific agency you are applying through.

Step 7: Await Verification and Inspection

After submission, the agency will review your documents. In many cases, they may also conduct a physical inspection of your factory or manufacturing unit to confirm that production is taking place in India as claimed. They will verify your processes, raw materials, machines, workforce, and records.

Step 8: Receive Your Make in India Certificate

If your application is approved after verification, the agency will issue your Make in India Certificate. This document officially certifies that your product meets the required Indian content standards. You can now use this certificate for participating in government tenders, supplying to public sector companies, and promoting your product as "Made in India".

The certificate is usually valid for 1 to 3 years, depending on the certifying body’s rules. You should track its validity and apply for renewal before it expires to continue enjoying the benefits.

The certification involves costs for CA verification, document preparation, and professional services.

Here's a quick fee breakdown:

• Validity: The Make in India Certificate is typically valid for 1 year from the date of issuance.
• Renewal Requirement: Once the certificate expires, you must apply for renewal with fresh documentation, including updated cost sheets and CA certification.
• Renewal Process:
  1. Recalculate local content.
  2. Get a fresh Chartered Accountant (CA) certification.
  3. Resubmit the application and documents to the issuing authority.

Tip: Start the renewal process 15–30 days before expiry to avoid any disruption in compliance or tender eligibility.

A typical Make in India Certificate includes the following elements:

• Certificate Number
• Issuing Authority (DGFT-approved agency)
• Name of Manufacturer / Exporter
• Description of Product
• HSN Code
• Country of Origin (India)
• Local Content (%)
• Authorized Signatory with Stamp
• Date of Issue & Expiry

How to Download the Make In India Certification?

You can download your Make in India Certificate in PDF format by:

1. Logging into the official DGFT portal or authorized issuing agency.
2. Navigate to your submitted application.
3. Clicking the "Download Certificate" option.
4. Save the file to your device.

Getting a Make in India Certificate can be very helpful for your business. It proves that your product is made in India and shows your support for local manufacturing.

1. Helps in Government Tenders

Many government departments and public sector companies prefer to buy from Indian manufacturers. With this certificate, you can apply for such tenders more easily and get better chances of winning.

2. Builds Customer Trust

When people see that your product is certified as "Made in India", they are more likely to trust and buy from you. It shows that you support Indian jobs and local growth.

3. Improves Brand Image

Having this certificate makes your brand look more professional and reliable. It helps your business stand out, especially if you are in a competitive market.

4. Support in Public Procurement

Under government rules, Class-I Local Suppliers get priority in public projects and contracts. This can lead to more orders and long-term business opportunities.

5. Access to More Business Opportunities

Many private and international companies also prefer working with Indian-certified suppliers. The certificate can help you get more business partnerships and grow faster.

6. Shows Commitment to 'Atmanirbhar Bharat'

This certificate proves that your business supports India’s mission of becoming self-reliant (Atmanirbhar Bharat). It shows that you are helping grow the Indian economy.

7. Marketing Advantage

You can proudly display the "Make in India" tag in your ads, product packaging, website, and social media. It gives a positive impression and can help increase your sales.