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 SIDO 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
MARKETING ASSISTANCE AND EXPORT PROMOTION SCHEME
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
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:
- (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
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.
- 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
- 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
- One SIDO officer will be deputed to each
fair for coordination of MSME-India stall.
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
National Award for Quality Products
The objectives of the scheme are as follows :-
- To encourage small scale industries to produce quality products conforming to national and international standards.
- To propagate a culture of quality consciousness amongst a vast section of Small Scale manufacturing units.
- 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.
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.