MSME Exhibition Subsidy – Fostering Business Development in India

MSME Exhibition subsidy has played an essential role in business development and assisting in marketing strategy for the survival of the MSMEs. Micro, Small, and Medium Enterprises play a significant role in the country’s economic growth due to its contribution to production, exports, and employment. The MSME sector contributes approximately 8 percent to its GDP, 45 percent to the manufactured output, and 40 percent to its exports. MSME sector employs 60 million people through its million enterprises.

The MSME sector has maintained a higher growth rate vis-à-vis the overall industrial sector during the past decade; exports from these enterprises have been tremendously on the rise, despite the increased cost of raw materials, global demand, and stiff international competition. Today, the sector produces various products, starting from simple consumer goods to high precision, sophisticated finished goods. It has turned to be a significant supplier of mass consumption goods and a producer of various essentials and drugs and pharmaceuticals. An impetus to the MSME sector is likely to have a multiplier impact on the economy’s growth. The useful tool was indeed the need of the hour to boost its marketing and export mechanism to reach the global arena.  MSME Exhibition Subsidy provides the majority of benefits to MSMEs in terms of economic development by enhancing their marketing techniques at a worldwide level.

Background of MSME Exhibition Subsidy

MSME Exhibition Subsidy is a scheme operated by the Ministry Of Commerce to provide round the clock assistance to MSMEs in enhancing their export rates and developing and accessing overseas markets. As part of the comprehensive policy scheme for the promotion development of MSMEs announced on 30th August 2000, it was concluded that the Small Industries Development Organization should have a Market Development Assistance (MDA). It should be a planned scheme. Under the MSMEs Exhibition Subsidy Scheme, it is proposed to provide marketing support to Micro, Small & Medium Enterprises through National Small Industries Corporation (NSIC) and enhance their products’ competitiveness and marketability through various activities. Ministry of Micro, Small & Medium Enterprises through National Small Industries Corporation (NSIC), a Public Sector Enterprise of the Ministry, is adamant in providing marketing assistance to Micro & Small Enterprises under MSMEs Exhibition Subsidy. Marketing has popped out to be a strategic tool for business development and is considered critical for micro, small & medium enterprises’ growth and survival. Marketing is an essential component for measuring the success rate of any enterprise. Large enterprises have enough resources and privileges to hire workers to handle the whole marketing sector and its products and services. MSME sector does not have sufficient resources at their command and thus needs institutional support for providing these inputs in marketing and sale. MSME Exhibition Subsidy is indeed the boosting factor for MSMEs and its ulterior motives.

Key point objectives of MSME Exhibition Subsidy

The objectives of the MSMEs Exhibition subsidy include the following:

• To encourage the esteemed exporters of Micro and Small enterprises and develop overseas markets.
• To increase the participation of representatives from small/ micro manufacturing enterprises under MSME India stall at International Trade Fairs/ Exhibitions.
• To intensify the export rate from small/ micro manufacturing enterprises.
• To popularize and promote the adoption of Bar Coding on a bigger scale.

Major Activities under MSME Exhibition Subsidy

Under the Scheme of MSMEs Exhibition Subsidy, it is proposed to provide marketing support to Micro, Small & Medium Enterprises through National Small Industries Corporation (NSIC) and enhance the competitiveness and marketability of their products, through these following activities:

• MSME Exhibition Subsidy helps in Organizing International Technology Exhibitions in Foreign Countries by NSIC
• MSME Exhibition Subsidy helps in participation in International Exhibitions/Trade Fairs
• MSME Exhibition Subsidy conducts Intensive campaigns and marketing promotion events.
• MSME Exhibition Subsidy provides financial assistance for using Global Standards.
• MSME Exhibition Subsidy assists the exporters for export promotion activities abroad.
• MSME Exhibition Subsidy assists the Export Promotion Councils (EPCs) to undertake various export promotion activities for their products and services.
• The current scheme assists the organizations/trade bodies in undertaking exclusive innovative activities associated with their members’ export promotion efforts.
• The scheme assists Focus export promotion program in specific regions abroad like FOCUS (LAC), Focus (CIS), Focus(Africa), and Focus (ASEAN + 2) program.
• MSME Exhibition Subsidy assists in essential activities connected with marketing promotion efforts abroad.

Subsidy Umbrella under MSME Exhibition Subsidy

• The Govt. of India shall reimburse 75% of airfare by economy class and 50% space rental charges for Micro & Small manufacturing enterprises for General category entrepreneurs.
• Women entrepreneurs and SC/ST Entrepreneurs & those from the North Eastern Region Govt. of India shall reimburse 100% of space rent & economy class airfare.
• The subsidy on airfare & space rental charges shall remain restricted to Rs.1.25 lakhs per unit.

Other benefits include:

• Assistance shall be available for travel purposes by one permanent employee/ Director/ partner/ proprietor of the economy class’s MSE unit.
• Space allocation will be made by DC (MSME) at its discretion, and the decision shall be final and binding.
• The offer is available only on a first-come, first-serve basis.

Conclusion

The MSME Exhibition Subsidy scheme has been successful to a much extent in achieving its prime objective by promoting micro & small enterprises’ marketing efforts. To further improve the scheme’s implementation, it is desirable to increase the number of events in the effective participation to increase the number of buyer-seller meets with the significant involvement of leading enterprises. The scheme aims to increase the participation of MSMEs in international fairs/exhibitions to improve export orders and market share, organize technology fairs in a sector-specific manner, etc. The scheme has proved to be a catalytic factor for the MSMEs market in the current scenario.

As the name suggests, the MSME Exhibition Subsidy avails all possible opportunities in terms of financial assistance and subsidies to the esteemed entrepreneurs and units interested in their business’s development and growth. Under the MSMEs Exhibition Subsidy, it offers funds for participation in international fairs, study tours abroad, trade delegations, etc. Direct assistance under the scheme for small- scale units is for individual sales/marketing and study tours, participation in fairs/exhibitions, and publicity.