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India Creates New Device Classes to Spur Local Manufacturing

December 21, 2020

In an effort to encourage domestic device manufacturing, India’s Department of Pharmaceuticals is establishing two classes of devicemakers for the purpose of bidding on contracts.

A Class I local supplier must provide goods and services that are at least 50 percent made in India; a Class II local supplier’s goods and services must be at least 20 percent locally sourced but less than 50 percent. A nonlocal supplier would have less than 20 percent of its goods and services locally sourced.

Both Class I and Class II suppliers will need to indicate the percentage of locally made products. They will also be required to provide details of the locations where the “local value addition” is made, the department said.

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