Class-I local supplier under Make in India, explained
Class-I local supplier. Under the Public Procurement (Preference to Make in India) Order, a supplier whose goods, services or works carry local content of 50% or more. It receives a 20% margin of purchase preference.
Checked against its sources on 23 September 2026.
The three classes
Class-I local supplier: local content of 50% or more. Class-II local supplier: at least 20% but less than 50%. Non-local supplier: below 20%. A nodal ministry may prescribe higher thresholds for its own products, never lower ones, so the figure in a particular tender can be above these.
What the preference does
The margin of purchase preference is 20%. Where the lowest bid is from a non-local supplier, a Class-I local supplier within that margin can be invited to match it. Class-II local suppliers get no purchase preference. Purchases below Rs 5 lakh are exempt from the order.
The order also restricts global tender enquiries: none for procurement up to Rs 200 crore without approval of the competent authority designated by the Department of Expenditure.
- Terms:
- L1, MSE purchase preference
Where ScanX reads this for you
For every GeM match, ScanX opens the bid document and puts this field in the row you receive, read from the document itself rather than typed by us.