Government buyers give purchase preference to local suppliers based on the percentage of local content. For procurement above ₹10 crore, the supplier must furnish a certificate of local content; for suppliers other than companies, a practising Cost Accountant is among those who may issue it, and for companies the statutory auditor or cost auditor certifies.
Scope of service
- Computation of local content percentage
- Identification of imported inputs and their value
- Bid-stage and supply-stage certificates
- Documentation for verification by the procuring entity
Regulatory framework
- Public Procurement (Preference to Make in India) Order, 2017, as revised
- Ministry-specific notifications on minimum local content
Typical professional activities
- Bill of materials and sourcing review
- Local content computation
- Certificate in the prescribed format
Applicable industries
Relevant articles and resources
- CAS-2: capacity determination and the cost of idle capacity
- CAS-4: cost of production for captive consumption
- CAS-6: measuring material cost
- CAS-7: employee cost in product costing
- Knowledge Centre: Cost Accounting
Frequently asked questions
Who certifies local content for Make in India procurement?
For procurement above ₹10 crore, companies furnish a certificate from their statutory auditor or cost auditor. Suppliers other than companies may furnish a certificate from a practising Cost Accountant or practising Chartered Accountant.
What is a Class-I local supplier?
Under the Public Procurement (Preference to Make in India) Order, 2017, a Class-I local supplier offers goods or services with local content of 50% or more. A Class-II local supplier has more than 20% but less than 50%.
The information on this page describes the nature of the service. It is not advice on any specific matter. See the disclaimer.