Market Development Assistance Scheme, 2019: Strategic Support to MSMEs

Market Development Assistance Scheme, 2019 has provided constant support to the MSMEs market to grow and prosper through NSIC. Marketing is a strategic mechanism for business development and is an essential component for the growth and survival of micro and small units. Due to a lack of resources, scarcity of relevant knowledge, and unorganized selling or marketing methods, the MSME sector has often faced innumerable problems exploring the new markets and retaining the existing ones. Such conditions of being unaware of the latest market methods where they may sell their products and buyers also having a lack of knowledge about the products manufactured by MSMEs results in severe impediments to MSMEs’ growth and competitive survival scenario. MSME sectors are more like newly growing buds requiring much extreme care and input to let it bloom in its natural course. Market Development Assistance scheme is a much-needed factor for the MSME to grow naturally by providing proper guidance and benefits through the scheme.

About Market Development Assistance Scheme, 2019

Market Development Assistance Scheme is an effort and initiative taken up by the Government of India presently operated by the Ministry of Commerce to promote exports and develop access to overseas markets. There are Governmental and non-governmental specialized agencies that provide marketing assistance. NSIC & KVIC have also devoted government agencies for providing platforms for marketing assistance to MSME units.

The overall marketing strategy covers various factors, advertising, public relations, promotions, sales, branding, etc. No matter if a business enterprise is offering the best of the products or services in its industry domain, none of the potential customers would know about it without the proper tool of marketing. Without marketing, sales may crash massively, and companies may have to shut down in the long run. Marketing is one of the crucial areas where MSMEs face problems. In the global platform, they lack the strategic tools and the means for their business development, several other big enterprises. Constant changes in the market dynamics due to technological changes and globalization have profoundly impacted the competitiveness of the MSMEs. The whole ambit of the marketing strategy for any product needs to be addressed, whether it is product differentiation, branding issue, customized and post-sale servicing, etc. The Marketing Development Assistance scheme, 2019, requires harmonizing and rationalizing to have a focused approach. The existing Market Development Assistance Scheme, 2019, might be revisited to strengthen the MSME sector’s marketing infrastructure and mainstream it to the major consuming industries and patterns.

Broad roles of Marketing Development Assistance Scheme, 2019

The functions of the Market Development Assistance Scheme, 2019:

• The role of the Market Development Assistance Scheme is to enhance the marketing capabilities & competitiveness of the MSMEs.
• Another function of the Marketing Development Assistance Scheme, 2019, is to showcase the competencies of MSMEs.
• Market Development Assistance Scheme, 2019 updates MSMEs about the prevalent market scenario and its impact on their activities.
• Market Development Assistance 2019 facilitates the formation of the consortia of MSMEs for the marketing of their products/services.
• Market Development Assistance, 2019 provides a platform to MSMEs for interaction with large institutional buyers.
• Market Development Assistance, 2019 propagates various programs of the Government.
• Market Development Assistance, 2019 enrich the marketing skills of the micro, small & medium entrepreneurs.

Objectives of the Marketing Development Assistance Scheme, 2019

The objectives of this Market Development Assistance Scheme, 2019, includes the following:

• To encourage and motivate the Small & Micro exporters in their efforts at tapping and developing overseas markets.
• To increase representatives of small or micro manufacturing enterprises under MSME Indian stall at International Trade Fairs and Exhibitions.
• To enhance the rate of export from small/ micro manufacturing enterprises.
• To promote and popularize the adoption of Bar Coding on a large scale.

Funding capacity of Marketing Development Assistance Scheme, 2019

The Market Development Assistance Scheme,2019 offers funding for:

• Participation by manufacturing Small & Micro Enterprises in the International Trade Fairs or Exhibitions under the MSME India stall.
• Sector-specific market study or detailed analysis by Industry Associations/ Export Promotion Councils/ Federation of Indian Export Organization.
• Contesting anti-dumping cases by MSME Association
• Reimbursement of 75% of the one-time registration fee (w.e.f. Ist January 2002) and 75% of annual fees (w.e.f. Ist June 2007) paid to GSI by Small & Micro units for the initial three years for bar code.

Subsidy benefit under Marketing Development Assistance Scheme, 2019

• The Govt. of India shall reimburse 75% of the airfare by economy class and 50% space rental charges for Micro or Small manufacturing enterprises in the case of General category entrepreneurs.
• In the case of Women or SC/ST Entrepreneurs & entrepreneurs belonging to the North Eastern Region, Govt. of India will reimburse 100% of the space rent and economy class airfare.
• The subsidy on airfare & space rental charges shall be restricted to Rs.1.25 lakhs per unit. Under the Marketing Development Assistance Scheme, 2019, assistance shall be available for travel by one permanent employee/Director/ partner/ proprietor of the micro or small enterprise unit in economy class.
• All decisions related to space allocation will be made by O/o DC (MSME) at its discretion, and the decision shall be final and binding.
• All the offers under Marketing Development Assistance Scheme, 2019, are available only on a first-come, first-served basis.

Conclusion

MSME is a significant contributor to the growth of the domestic economy and employment generation in India. Market Development Assistance Scheme, 2019 helps to get adequate support in terms of the policy framework, incentives, and other relevant aids. Though Indian MSMEs are finding it difficult to sell their products in the domestic and international markets because of growing competition to make their products globally competitive, Indian MSMEs need to upgrade their technology and emphasize innovation. Marketing Development Assistance Scheme, 2019 is an efficient tool that helps MSMEs improve their performance and gain real-time insight into the business. Market Development Assistance Scheme, 2019 can enhance business planning’s effectiveness and accuracy without implementing an expensive system to improve sales, optimize inventory, understand customer and product behavior patterns, etc. for building up efficient, robust & profitable business globally.