Market Development Assistance Scheme
A Market Development Assistance Scheme is currently operated by the Ministry of Commerce with a view to encourage exporters (including MSME exporters) to access and develop overseas markets. The scheme offers funding for participation in international fairs, study tours abroad, trade delegations, publicity, etc. Direct assistance under MDA for small- scale units is given for individual sales-cum-study tours, participation in fairs/exhibitions and publicity. SIDBI operates a scheme of direct assistance for financing activities relating to marketing of MSME products.
The Office of DC(MSME) has an existing scheme for participation in international fairs, whereby MSME entrepreneurs are encouraged to display their products at international exhibitions abroad. MSME-DO provides exhibition space and shipment of exhibits ex-Mumbai free of cost for this purpose.
PROPOSED SCHEME:
As part of the comprehensive policy package for promotion and development of MSMEs announced on 30th August 2000, it was decided that the Small Industries Development Organisation should have a Market Development Assistance (MDA) scheme similar to the one obtaining in the Ministry of Commerce. It should be a Plan Scheme.
In pursuance of the above announcement and in recognition of the fact that (i) MSME exporters need to be encouraged in their efforts at tapping and developing overseas markets; and (ii) MSME-DO’s participation in international fairs, if coupled with the presence of actual exporters, would lead to substantial increase in export business, it has been decided to operate a new scheme called MSME Exporters Market Development Assistance (MSME-MDA) Scheme .
The scheme to be operated in addition to the existing MSME-DO scheme for participation in international fairs will cover all activities for which direct assistance is given under the existing MDA scheme of the Ministry of Commerce. In addition, the scheme would also provide for financial assistance for commissioning market study reports and for initiating/contesting anti-dumping cases.
Market Development Assistance Scheme for Micro/ Small manufacturing enterprises/ Small & Micro exporters (MSME-MDA)
The scheme offers funding for:
1. Participation by manufacturing Small & Micro Enterprises in International Trade Fairs/ Exhibitions under MSME India stall.
2. Sector specific market studies by Industry Associations/ Export Promotion Councils/ Federation of Indian Export Organisation.
3. Initiating/ contesting anti-dumping cases by MSME Associations and
4. Reimbursement of 75% of one time registration fee (w.e.f. Ist January 2002) and 75% of annual fees (recurring) (w.e.f. Ist June 2007) paid to GSI (Formerly EAN India) by Small & Micro units for the first three years for bar code.
Objective:
(i) To encourage Small & Micro exporters in their efforts at tapping and developing overseas markets.
(ii) To increase participation of representatives of small/ micro manufacturing enterprises under MSME India stall at International Trade Fairs/ Exhibitions.
(iii) To enhance export from the small/ micro manufacturing enterprises
(iv) To popularise the adoption of Bar Coding on a large scale.
Eligibility criteria:
i) Unit having valid permanent registration with Directorate of Industries/ District Industries Centre.
ii) The selection of small/ micro manufacturing units would be done by MSME-DIs as per display product profile, theme of the fair and space availability.
iii) Micro & Small manufacturing enterprise can avail this facility only once a year
iv) Only one person of the participating unit would be eligible for subsidy on air fare.
v) the participating units under MSME India stall at International Trade Fairs/ Exhibitions has to pay 50% of space rental charges of booked space (min. 6 sq.mtr.) by enterprises of General categories through MSME-DIs by a DD favouring PAO (MSME), New Delhi at least one month advance of the commencement of the event. In addition to this, selected units can book more space in multiple of 1×3 sq.mtr. on pro-rata basis and make payment accordingly. However, Women, SC&ST entrepreneurs & entrepreneurs from North Eastern Region need not to pay space rental charges.
vi) The representatives of the participating units are required to carry and manage the samples (to and fro including custom clearance etc.) for display under MSME India stall at the International Trade Fairs/ Exhibitions.