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Export Promotion

Export Promotion
This Institute provides assistance to small scale industries in the areas of export marketing such as Training in Export Marketing, Export Packaging, Seminars and Awareness Programmes. It provides guidance to Entrepreneurs on potentials, prospects of products, procedures and publication of Bulletin etc. Many of the Programmes are conducted in Association with Industry Export Promotion Council and other related Institutions like Indian Institution of Packaging, Director General of Foreign Trade and Director General, Anti- Dumping. assisting the Units by way of participation in International Trade Fairs is one of the major important service of the Export Promotion Division.
The Institute provides marketing assistance to small scale enterprises through its Sub Contract Exchange (SCX) & Vendor Development Programme. Further, Small scale Units are assisted in registering with the National Small Industries Corporation Ltd.,(NSIC) under the Government Stores Purchase Programme. The enlisted Small Scale Units are eligible to apply to Government Departments and are exempted from paying earnest money deposit and tender application costs. Further, for developing marketing competency several programmes on sales and marketing and consultancy are provided.
ž Credit Guarantee Fund Scheme
ž Export Promotion
ž Incentives
ž ISO 9001/14001/HACCP CertificationReimbursement Scheme
ž Price and Purchase Policy

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 Small Scale Units in the field of exploring market potential, export promotion and exhibitional publicity, the following schemes are being implemented:-

Export Promotion Programmes / Measures


(A) 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.

(B) 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.
(I) Participation in the International Exhibitions/ Fairs

Office of the Development Commissioner (Small Scale Industries) is participating in some of the selected International Exhibitions/ Fairs since 1985. It is purely promotional scheme to give exposure to the products of small scale units 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 MSME units 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 MSME units have been benefited. For confirm participation, the unit has to send 40% of space hiring charges of their booked space (min. 6 sq.mtr.) through MSME-DIs by a DD favouring PAO (MSME), New Delhi at least one month advance of the commencement of the event. 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.

(II) 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.

(III) 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 subject to upper limit of Rs.40,000/- (Rs.60,000/- for Latin American Countries) for small manufacturing enterprises and 90% (with corresponding absolute ceiling) for Micro manufacturing enterprises. (ii) 60% subsidy on space rent. (iii) Subsidy of Rs. 15,000/- per participating unit for the shipping cost of exhibits. (iv) 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 and Rs.1.50 lakhs for Micro manufacturing enterprises or actual, whichever is less. (v) Any unit can avail of this facility only once a year and (vi) Only one person of the participating unit would be eligible for subsidy on air fare.

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). To avail financial assistance under the scheme, application may be sent alongwith requisite documents etc.

(IV) 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.