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Government

40% of Government Tenders Fail to Align with Make in India Norms: Report

By November 2024, tenders worth Rs 63,911 crore failed to adhere to the 2017 Make in India guidelines.

40% of Government Tenders Fail to Align with Make in India Norms: Report

PM Narendra Modi during the inauguration of Paradip Refinery in Odisha on February 7, 2016. Source: Wikimedia Commons

The Department for Promotion of Industry and Internal Trade (DPIIT), the nodal agency spearheading the “Make in India” initiative, has identified significant non-compliance with government procurement rules designed to promote domestic manufacturers.

According to a report by The Indian Express, DPIIT flagged 40% of high-value tenders floated over the past three years as non-compliant with the Public Procurement (Preference to Make in India) Order, 2017.

These rules prohibit tenders that discriminate against or disadvantage domestic suppliers, either by specifying foreign brands or imposing eligibility criteria, such as turnover thresholds or production capabilities, that domestic firms may find difficult to meet.

Examples of such procurements include items like lifts, CCTV cameras, medical supplies, and desktop computers, where foreign brands were favoured due to perceptions of better cost-effectiveness or quality.

In February 2023, the DPIIT revealed that out of 1,750 high-value tenders (defined as over Rs 1 crore for services, Rs 50 crore for goods, and Rs 100 crore for works) issued by central government entities since October 2021, 936 tenders—amounting to Rs 53,355 crore—violated the 2017 procurement rules.

By November 2024, this non-compliance rate increased to 42%, with 1,507 of the 3,590 scrutinized tenders, valued at Rs 63,911 crore, failing to adhere to the Make in India guidelines.

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