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 the 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 increases in export
business, it has been decided to operate a new scheme called the MSME Exporters
Market Development Assistance (MSME-MDA) Scheme.
The scheme will be operated in addition to the existing MSME-DO scheme for
participation in international fairs. It will cover all activities for which direct
assistance is given under the existing MDA scheme of the Ministry of Commerce.
Additionally, the scheme will provide 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:
- Participation by manufacturing Small & Micro Enterprises in International Trade
Fairs/Exhibitions under the MSME India stall.
- Sector-specific market studies by Industry Associations/ Export Promotion
Councils/ Federation of Indian Export Organisation.
- Initiating/contesting anti-dumping cases by MSME Associations.
- Reimbursement of 75% of one-time registration fee (w.e.f. 1st January 2002) and
75% of annual fees (recurring) (w.e.f. 1st June 2007) paid to GSI (Formerly EAN
India) by Small & Micro units for barcoding.
Objective
- To encourage Small & Micro exporters in their efforts at tapping and developing
overseas markets.
- To increase participation of representatives of small/micro manufacturing
enterprises under the MSME India stall at International Trade Fairs/Exhibitions.
- To enhance exports from the small/micro manufacturing enterprises.
- To popularize the adoption of Bar Coding on a large scale.
Eligibility Criteria
- Unit having valid permanent registration with the Directorate of Industries/
District Industries Centre.
- 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.
- Micro & Small manufacturing enterprises can avail this facility only once a
year.
- Only one person of the participating unit would be eligible for subsidy on
airfare.
- The participating units under the MSME India stall at International Trade
Fairs/Exhibitions must pay 50% of space rental charges for booked space (min. 6
sq.mtr.) by enterprises of General categories through MSME-DIs by a DD favoring
PAO (MSME), New Delhi at least one month in advance of the commencement of the
event. Additionally, selected units can book more space in multiples of 1×3
sq.mtr. on a pro-rata basis and make payments accordingly. However, Women, SC/ST
entrepreneurs & entrepreneurs from North Eastern Regions need not pay space
rental charges.
- The representatives of the participating units are required to carry and manage
the samples (to and fro including customs clearance, etc.) for display under the
MSME India stall at the International Trade Fairs/Exhibitions.
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