The Make in India (MII) initiative was launched to attract global businesses to establish manufacturing operations in India, fostering a robust export market. This program aims to enhance the country's manufacturing capabilities, stimulate economic growth, and create job opportunities while reinforcing India's position as a competitive manufacturing hub.
In alignment with this vision, the MII certification has become essential for Micro, Small, and Medium Enterprises (MSMEs) seeking to participate in government tenders. The initiative promotes local manufacturers and service providers through various policies and schemes, making it vital for MSMEs to adopt the Make in India framework.
What is the Make in India (MII) Certification?
The Make in India certification serves as a vital credential for Original Equipment Manufacturers (OEMs). It ensures that products marketed under this initiative are primarily manufactured in India, aligning with government goals to promote domestic manufacturing and strengthen the industrial sector.
Obtaining this certification allows MSMEs to showcase their commitment to India's manufacturing capabilities, contributing to national growth and development.
Why Do MSMEs Require Make in India Certification?
According to the revised circular P-45021/2/2017-PP (BE-II), only Class-I and Class-II local suppliers are eligible to bid for procurement processes involving goods, services, or works valued below Rs. 200 crores. This mandates that OEMs submit a Make in India undertaking to qualify for participation in government tenders and public procurements, including on platforms like the Government e-Marketplace (GeM) and National Informatics Centre Services Incorporated (NICSI).
This requirement is part of the government’s strategy to promote local suppliers and enhance the overall manufacturing landscape in India.
Classification of MII Local Suppliers as per DPIIT
The Department for Promotion of Industry and Internal Trade (DPIIT) has categorized local suppliers based on the percentage of local content in their products, as follows:
- Class-I Local Supplier: Suppliers whose products contain at least 50% local content. This category reflects a significant commitment to using Indian materials and resources.
- Class-II Local Supplier: Suppliers whose products contain more than 20% but less than 50% local content. While these suppliers utilize some Indian resources, they do not meet the threshold for Class-I status.
- Non-local Supplier: Suppliers whose local content is 20% or less. These suppliers may source a significant portion of their materials and components from outside India.
Classifications Explained
- Class-I Local Supplier: To qualify as a Class-I local supplier, a vendor must demonstrate that at least 50% of their goods, services, or works comprise local content.
- Class-II Local Supplier: A vendor falls under this classification if their local content ranges between 20% and 50%.
- Non-local Supplier: A supplier with local content of 20% or less is classified as non-local.
Benefits of Make in India Certification
The MII certification offers numerous advantages for Indian manufacturers, including:
- Enhanced Credibility: The MII certification boosts brand reputation by showcasing products as locally made.
- Access to Government Tenders: Certified vendors can participate in government procurement processes.
- Reduced Compliance Burden: Compliance with local manufacturing standards becomes streamlined.
- Wider Market Reach: The certification opens doors to more significant business opportunities.
- Improved Customer Satisfaction: Local sourcing can enhance customer trust and loyalty.
- Preference in Bidding: MII-certified vendors receive preference during L1 bidding processes.
- Export Benefits: Certified producers gain access to various export incentives.
- Showcasing at Events: Products made in India will be highlighted during national and international events.
The Make in India initiative plays a pivotal role in reshaping India’s manufacturing landscape. By obtaining the MII certification, MSMEs not only enhance their credibility and marketability but also contribute to the nation’s economic growth and self-reliance. Embracing this initiative is essential for businesses aiming to thrive in a competitive global market.
Documents Required for Make in India Certification
To obtain the Make in India (MII) certificate, the following documents are necessary:
- Details of Components: Breakdown of materials used in the product.
- Monthly Manufacturing Capacity: Documentation of production capabilities.
- GSTIN Certificate: Proof of Goods and Services Tax registration.
- GeM OEM Certificate: Certification for Original Equipment Manufacturers on the Government e-Marketplace.
- Purchase Bills: Invoices for raw materials and equipment used in manufacturing.
- Monthly Utilization Capacity: Records showing the usage of manufacturing capabilities.
- Manufacturing Floor Diagram: A layout of the production facility.
- Affidavit from Chartered Accountants: Verification of information provided.
Procedure for Obtaining MII Certification
The process to acquire an MII certificate can be summarized in the following steps:
Step 1: Document Preparation
Gather all necessary documents, ensuring clarity and legibility to avoid processing delays.
Step 2: Product Details and Documentation
Compile detailed information on the products, including a breakdown of raw materials used in manufacturing.
Step 3: Calculation of Local Content
Calculate the percentage of Indian and overseas components in the products, ensuring accuracy.
Step 4: Verification by Chartered Accountants
Submit the compiled information for verification and certification by an authorized Chartered Accountant.
Step 5: Issuance of MII Certificate
Once verified, the CA will issue the MII certificate.
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