The Department for Promotion of Industry and Internal Trade (DPIIT) has proposed the appointment of a third-party consulting agency to review tenders issued by central government procuring entities. The agency will scrutinize these tenders for compliance with the Public Procurement (Preference to Make in India) Order, 2017.
This initiative is part of the government’s broader effort to ensure that public procurement contributes meaningfully to domestic manufacturing and the Make in India programme.
Ensuring local content in public procurement
The 2017 order was implemented to promote the procurement of locally manufactured goods and services by giving preference to suppliers meeting prescribed local content requirements. Under this framework, discriminatory or restrictive clauses that disadvantage Indian suppliers are not permitted in government tenders.
To enforce the policy, contractors and suppliers failing to meet local content stipulations can face penalties of up to 10% of the contract value.
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DPIIT flags gaps in enforcement
According to the DPIIT, one of the biggest reasons for non-compliance is the failure of procuring bodies to mention the applicability of the 2017 Order in tender documents. The department noted that during 2024 alone, 259 tenders were identified as not compliant with the procurement norms.
To address this, the department has now floated a request-for-proposal (RFP) seeking to onboard an agency for one year. The chosen agency will evaluate tenders issued by central government bodies and verify whether they adhere to the stipulations of the Public Procurement Order.
Strengthening policy enforcement
By engaging an external consultant, DPIIT hopes to bring greater consistency and accountability in the enforcement of domestic procurement rules. The agency will help flag violations, assess tender clauses for discriminatory content, and support DPIIT in pushing for corrective action across departments.
This step is also expected to boost the participation of Indian manufacturers in public procurement and ensure that government contracts contribute directly to the growth of domestic industry.