How to Claim MSE and Make in India (MII) Exemptions on GeM (EMD + Purchase Preference Guide)
Many businesses miss valuable benefits when participating in government tenders simply because they are unaware of the exemptions available to them. If your company is registered as an MSME or manufactures products in India, you may be eligible for important advantages under MSE and Make in India (MII) policies.
These government initiatives are designed to encourage small businesses and domestic manufacturers to participate in public procurement.
By correctly claiming these benefits on the Government e-Marketplace (GeM), vendors can receive:
- EMD (Earnest Money Deposit) exemptions
- Purchase preference benefits
- Relaxation in eligibility conditions
- Higher chances of winning government contracts
In this guide, we explain how to claim MSE and Make in India exemptions on GeM and how vendors can legally take advantage of these policies.
What is MSE (Micro and Small Enterprises) Exemption?
MSE exemptions are benefits provided to businesses registered as Micro or Small Enterprises under the MSME framework.
The government promotes participation of small businesses in procurement by offering certain relaxations in tender requirements.
Companies that hold a valid Udyam Registration Certificate can claim these benefits while bidding for government tenders.
Key Benefits of MSE Exemption
- Exemption from Earnest Money Deposit (EMD)
- Exemption from tender document fees in many cases
- Relaxation in prior experience criteria (in certain tenders)
- Purchase preference over non-MSME vendors
However, these exemptions are only available when the vendor properly declares and verifies their MSME status on the GeM portal.
What is the Make in India (MII) Policy?
The Make in India (MII) procurement policy encourages government departments to purchase products manufactured within India.
Under this policy, vendors are classified based on their local content percentage.
There are two main categories:
- Class I Local Supplier: Minimum 50% local content
- Class II Local Supplier: Minimum 20% local content
Suppliers who qualify under these categories receive preference during tender evaluation.
Benefits of Make in India Preference
- Priority over foreign suppliers
- Purchase preference during bid comparison
- Higher probability of selection in competitive bids
This policy is particularly beneficial for manufacturers operating within India.
How to Claim MSE Exemption on GeM
To claim MSE benefits on GeM, vendors must ensure their MSME registration is correctly linked with their seller account.
Step 1: Obtain Udyam Registration
Your business must have a valid Udyam Registration Certificate issued by the Government of India.
This certificate confirms that your company qualifies as a Micro or Small Enterprise.
Step 2: Link MSME Details on GeM
While completing the seller profile on GeM, vendors must provide:
- Udyam Registration Number
- Business category (Micro or Small)
- Manufacturing or service classification
The system may automatically verify these details using government databases.
Step 3: Declare MSE Status During Bidding
While submitting a tender on GeM or other portals, vendors must declare their MSE status in the eligibility section.
Supporting documents such as the Udyam certificate should be uploaded during the technical bid submission.
How to Claim Make in India (MII) Benefits on GeM
Vendors claiming Make in India benefits must declare the percentage of local content in their products.
Step 1: Determine Local Content
Local content refers to the percentage of value added within India during the manufacturing process.
This includes:
- Raw materials sourced from India
- Manufacturing activities conducted in India
- Assembly and production within the country
Step 2: Self-Declaration Certificate
Suppliers must submit a self-declaration certificate confirming their local content percentage.
This certificate is usually required in the technical bid documents.
Step 3: Select Local Supplier Category
During bid submission, vendors must declare whether they are:
- Class I Local Supplier
- Class II Local Supplier
Incorrect declarations can lead to tender disqualification, so accuracy is critical.
Common Mistakes Vendors Make While Claiming Exemptions
Many vendors fail to receive MSE or MII benefits because of simple mistakes during tender submission.
Common errors include:
- Not linking MSME registration with the GeM profile
- Uploading expired MSME certificates
- Incorrect declaration of local content
- Missing self-declaration documents
- Failure to select exemption options during bidding
Even if a company qualifies for exemptions, failure to properly claim them can result in losing valuable advantages.
How Wroftech Helps Vendors Claim MSE and MII Benefits
Understanding government procurement policies can be challenging for businesses that are new to tender participation.
At Wroftech Tender Consultancy, we help vendors maximize their bidding advantages by ensuring proper compliance with MSME and Make in India policies.
Our services include:
- MSME and Udyam registration assistance
- GeM seller profile optimization
- MSE exemption claim support
- Make in India declaration preparation
- Complete tender documentation and submission
With professional guidance, businesses can legally claim exemptions and improve their chances of winning government contracts.
Final Thoughts
MSE and Make in India policies provide powerful benefits for small businesses and domestic manufacturers participating in government procurement.
By properly claiming these exemptions on GeM and other tender portals, vendors can reduce bidding costs and gain competitive advantages.
If your company qualifies for these benefits, it is essential to ensure the documentation and declarations are prepared correctly during the bidding process.
With the right strategy and expert support, government tenders can become a major growth opportunity for your business.