Rationale Behind Export Promotion

The capability of Indian MSME products to compete in international markets is reflected in its share of about 34% in national exports. In case of items like readymade garments, leather goods, processed foods, engineering items, the performance has been commendable both in terms of value and their share within the MSME sector while in some cases like sports goods they account for 100% share to the total exports of the sector. In view of this, export promotion from the small scale sector has been accorded high priority in India’s export promotion strategy which includes simplification of procedures, incentives for higher production of exports, preferential treatments to MSMEs in the market development fund, simplification of duty drawback rules, etc. Products of MSME exporters are displayed in international exhibitions free of cost under MSME-DO Umbrella abroad.

International Exposure to MSME Products

With a view to rendering assistance to Micro & Small Manufacturing Enterprises in the field of exploring market potential, export promotion, participation in international trade fair exhibition , the following schemes are being implemented:-

Export Promotion Programmes / Measures



Plan Scheme ‘Training and Manpower Development' consists of the following Components :-

•  Participation in the International Exhibitions/ Fairs.

•  Training Programmes on Packaging for Exports

•  Marketing Development Assistance Scheme for MSME exporters (MSME-MDA)

•  National Award for Quality Products.

Export Promotion from the small-scale sector has been accorded a high priority in the India's export promotion strategy. Apart from the number of incentives and facilities to small-scale exporters, the following plan schemes are in operation for achieving growth in exports.

Participation in the International Exhibitions/ Fairs

Office of the Development Commissioner (MSME) is participating in some of the selected International Exhibitions/ Fairs since 1985. It is purely promotional scheme to give exposure to the products of micro, small enterprises which otherwise are not in a position to participate in the exhibitions/ fairs at their own cost. Under the scheme, exhibits of the selected export-worthy units are displayed in the exhibition that provides an opportunity to MSEs in demonstrating their capabilities before the international community. On an average, this Office has been participating in 8-10 number of International Exhibitions/ Fairs abroad every year and 200 MSEs have been benefited. For confirm participation, the unit has to send 50% of space hiring charges of their booked space (min. 6 sq.mtr.) through MSME-Development Institutions (Formerly SISIs) by a DD favouring PAO (MSME), New Delhi at least 45 days advance of the commencement of the event or till space is available.100% subsidy on space rent is available to sc/st women entrepreneur and entrepreneur of NE region. The participating units will also carry/ manage their exhibits (to and fro) including custom clearance etc. If any body wants more space, they can book in multiple of 1x3 sq.mtr. on pro-rata base and would be required to pay on pro-rata basis. 75% Subsidy on air fair of economy class to general category of entrepreneur(100% to sc/st women entrepreneur and entrepreneur of NE region)

Training Programmes on Packaging for Exports

India faces formidable hurdle in meeting and matching the packaging requirements of her exportable products in the markets abroad. The main objective of scheme is to generate much needed consciousness in the industry about the packaging problems of MSME exporters and to educate the entrepreneurs about the latest packaging techniques and designs of the packaging. These programmes on Packaging for Exports are conducted since 1979 by all the field institutes in collaboration with Indian Institute of Packaging and GS1 India (formerely EAN India) ( A Bar Code solution provider ). The programme is of One, Two & Three days duration and 20 to 35 existing and potential entrepreneurs have been participating in each of the programmes. As per instruction of IF Wing, only 50-60 percent (20 percent in NE region and J&K) of the total cost of the programme are recovered from the participants as participation fee. 20-25 programmes are being conducted every year throughout the country.


Market Development Assistance Scheme for MSME exporters (MSME-MDA)

As part of the comprehensive policy package for MSMEs, MSME-MDA scheme has been announced in August 2000 and came into operation w.e.f. 30 th August, 2001. With a view to increase participation of representatives of participating units, the provision of MSME-MDA Scheme has been modified recently. The major changes in the earlier scheme are as under:

  1. (i) the Govt. of India will reimburse the 75% of air fare by economy class and 50% subsidy on space rent. to general category of Micro manufacturing enterprises.(ii)100% to sc/st women entrepreneur and entrepreneur of NE region (iii) The total subsidy on air fare, space rent & shipping cost of exhibits will be restricted to Rs.1.25 lakhs per unit for manufacturing enterprises or actual, whichever is less. (iv) Any unit can avail of this facility only once a year and (v) Only one person of the participating unit would be eligible for subsidy on air fare. (vi) The booking of minimum 6 Sq. Mtrs. is allowed.
  2. The amount of 50% of space hiring charges shall be sent by a DD favouring PAO (MSME), New Delhi through MSME-Dis (Formerly SISIs)along with passport particulars plus first and last two pages of valid passport of their visiting representatives.
  3. The circulars are issued to Director, all MSME-DIs (formerly SISIs) for selection of Small/ Micro manufacturing enterprises whose products conforming to the International Standards & Quality.
  4. One MSME-DO officer will be deputed to each fair for coordination of MSME-India stall.

       In addition, the scheme also provide for financial assistance upto Rs. 2.00 lakhs for commissioning specific market studies and assistance for initiating/ contesting anti-dumping cases is available to MSME Association limited to 50% of the total cost of Rs. 1.00 lakh whichever is less. Provision for reimbursement of 75% of one-time registration fee paid to GS1 India by MSME unit for adoption of Bar Coding (w.e.f. Ist January, 2002).75% of Annual recurring fee of bar code is also available (w.e.f. 1st June 2007) for the 1st three years periodTo avail financial assistance under the scheme, application may be sent alongwith requisite documents etc.


National Award for Quality Products

The objectives of the scheme are as follows :-

  1. To encourage small scale industries to produce quality products conforming to national and international standards.
  2. To propagate a culture of quality consciousness amongst a vast section of Small Scale manufacturing units.
  3. To instill a sense of confidence of small industry products in the minds of the domestic consumers and to enhance the image of Indian products in export market.

These awards are given on the basis of recommendation by the State/ UT Level Selection Committee and the final selection by the National level Selection Committee for every calendar year.


Packaging for Exports

Role of packaging for exports has gained much significance in view of trends in the world markets. The need for better and scientific packaging for exports from small sector was recognised long back. With a view to acquaint MSME Exporters of the latest Packaging standards, techniques etc. training programmes on packaging for exports are organised in various parts of the country. These programmes are organised in association with Indian Institute of Packaging which has requisite expertise on the subject. Basic objective of these programmes is to generate the much needed consciousness in the industry and to educate the entrepreneurs about the scientific techniques of Packaging. With the assistance of EAN India to sensitize Indian exporters about barcoding. 7 training sessions were conducted in 2000-01 at different locations across the country. However, bar code topic is added in the said programme.
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Technical & Managerial Consultancy Services

Technical & Managerial Consultancy Services to the MSME manufacturers/exporters is provided through a network of field offices of this office so as to ensure higher level of production and generation of higher exports.

National Awards for Quality Products

With a view to encourage the small scale units for producing Quality goods, National Awards for Quality Products are given to the outstanding small scale units, who have made significant contribution for improving quality of their products. The scheme is being operated since 1986. Winners of National Awards get a Trophy, a Certificate and a Cash Prize of Rs.25,000/-($559.6) National Awards encourage Small Scale Industries units to produce quality goods which further enables them to enter into export market.

Related Links:

Bar Coding
Forms of Bar Coding