SCHEME FOR MARKET DEVELOPMENT ASSISTANCE FOR MSME EXPORTERS (MSME - MDA)
Implementation of the Scheme
Check list of documents to be enclosed with Application form and claim form
FORM-I Application form for participation in fair/study tours/trade delegation
FORM-II Claim form for participation in fair/study tour
form for assistance for publicity
FORM-V Claim form for publicity
A Market Development Assistance Scheme
is currently operated by the Ministry of Commerce with a view
to encourage exporters (including MSME exporters) to access
and develop overseas markets. The scheme offers funding for
participation in international fairs, study tours abroad,
trade delegations, publicity, etc. Direct assistance under
MDA for small- scale units is given for individual sales-cum-study
tours, participation in fairs/exhibitions and publicity. SIDBI
operates a scheme of direct assistance for financing activities
relating to marketing of MSME products.
The Office of DC(MSME) has an existing
scheme for participation in international fairs, whereby MSME
entrepreneurs are encouraged to display their products at
international exhibitions abroad. MSME-DO provides exhibition
space and shipment of exhibits ex-Mumbai free of cost for
As part of the comprehensive policy package
for promotion and development of MSMEs announced on 30th
August 2000, it was decided that the Small Industries Development
Organisation should have a Market Development Assistance (MDA)
scheme similar to the one obtaining in the Ministry of Commerce.
It should be a Plan Scheme.
In pursuance of the above announcement
and in recognition of the fact that (i) MSME exporters need
to be encouraged in their efforts at tapping and developing
overseas markets; and (ii) MSME-DO's participation in international
fairs, if coupled with the presence of actual exporters, would
lead to substantial increase in export business, it has been
decided to operate a new scheme called MSME Exporters Market
Development Assistance (MSME-MDA) Scheme .
The scheme to be operated in addition to the
existing MSME-DO scheme for participation in international fairs
will cover all activities for which direct assistance is given
under the existing MDA scheme of the Ministry of Commerce.
In addition, the scheme would also provide for financial assistance
for commissioning market study reports and for initiating/contesting
anti-dumping cases. The scheme came into operation w.e.f.
Market Development Assistance Scheme for Micro/ Small manufacturing
enterprises/ Small & Micro exporters (MSME-MDA)
The scheme offers funding for:
1. Participation by manufacturing Small & Micro Enterprises
in International Trade Fairs/ Exhibitions under MSME India
2. Sector specific market studies by Industry Associations/
Export Promotion Councils/ Federation of Indian Export Organisation.
3. Initiating/ contesting anti-dumping cases by MSME Associations
4. Reimbursement of 75% of one time registration fee (w.e.f.
Ist January 2002) and 75% of annual fees (recurring) (w.e.f.
Ist June 2007) paid to GSI (Formerly EAN India) by Small &
Micro units for the first three years for bar code.
(i) To encourage Small & Micro exporters in their efforts
at tapping and
developing overseas markets.
(ii) To increase participation of representatives of small/
enterprises under MSME India stall at International Trade
(iii) To enhance export from the small/ micro manufacturing
(iv) To popularise the adoption of Bar Coding on a large
Participation by manufacturing Small & Micro Enterprises
Trade Fairs/ Exhibitions under MSME India stall
1.1 Eligibility criteria
i) Unit having valid permanent registration with Directorate
of Industries/ District Industries Centre.
ii) The selection of small/ micro manufacturing units would
be done by MSME-DIs as per display product profile, theme of the
iii) Micro & Small manufacturing enterprise can avail
this facility only once a year
iv) Only one person of the participating unit would be eligible
for subsidy on air fare.
v) the participating units under MSME India stall at International Trade Fairs/ Exhibitions has to pay 50% of space rental
booked space (min. 6 sq.mtr.) by enterprises of General
through MSME-DIs by a DD favouring PAO (MSME), New Delhi
at least one month advance of the commencement of the event.
addition to this, selected units can book more space in
1x3 sq.mtr. on pro-rata basis and make payment accordingly.
However, Women, SC&ST entrepreneurs & entrepreneurs
North Eastern Region need not to pay space rental charges.
vi) The representatives of the participating units are required
and manage the samples (to and fro including custom clearance
etc.) for display under MSME India stall at the International
1.2 Permissible subsidy:
(i) The Govt. of India will reimburse 75% of air fare by economy
class and 50% space rental charges for Micro & Small manufacturing
General category entrepreneurs.
(ii) For Women/SC/ST Entrepreneurs & Entrepreneurs from
Region Govt. of India will reimburse 100% of space rent and
class air fare.
(iii) The total subsidy on air fare & space rental charges
will be restricted to
Rs.1.25 lakhs per unit.
1.3 Other conditions:
(i) Assistance shall be available for travel by one permanent
Director/ partner/ proprietor of the MSE unit in economy class.
(ii) Space allocation will be made by O/o DC (MSME) at its
discretion and the
decision will be final and binding.
(iii) The offer is available on first come first served basis
till space is
1.4 Procedure for availing Financial Assistance/Reimbursement
1.4.1 The application must reach to the Office of DC (MSME)
concerned MSME-DIs at least one month in advance of the commencement of the event. The application must be accompanied
(i) Copy of the valid MSME registration issued by concerned
Director of Industries.
(ii) Demand Draft in favour of PAO (MSME), New Delhi for 50%
charges of the booked space.
(iii) Details of one or two participating representatives
of the unit with
photo copy of their valid passport.
(iv) Proof of ownership of the unit as SC/ST/Women.
1.4.2 On the completion of the event, the participating unit
must submit a
claim for payment enclosing the following:
(i) Pre-receipted bill in duplicate.
(ii) Photocopy of passport indicating therein entries regarding
from and arrival in India and also the country visited.
(iii) Original air ticket used during the journey. In case
original air ticket
is lost, a copy of the same along-with a certificate indicating
travel from the concerned airline may be furnished.
(iv) Participated units should furnish feedback report like
generated with value including confirmed orders obtained etc.
(v) Claim form must be submitted within one month of return
to India on
completion of activity.
(vi) No refund/ adjustment of rental charges will be made
by O/o DC
A checklist of documents required to be submitted in each case may be seen at Annexure
SECTOR-SPECIFIC MARKET STUDIES
Financial assistance for the conduct of market studies would
be available for industry associations/EPCs/FIEO. These
should be sector specific and in respect of those sectors
where MSMEs have a significant presence. This will include
studies commissioned by industry associations to assess
impact of WTO agreements on a specific sector. The Office
of DC(MSME) may also commission such studies independently
under this scheme. Assistance for commissioned studies would
be limited to an overall ceiling of Rs.2 lakhs per study.
With the opening up of the economy, the use of unfair trade
practices has come into sharper focus. Establishing the
use of unfair trade practices such as dumping requires much
groundwork. Assistance for initiating/contesting anti-dumping
cases will therefore be made available to MSME associations.
Such assistance would be limited to 50% of total costs involved
or Rs. 1 lakh whichever is lower.
Proposals in respect of market assistance/sector studies
and for anti-dumping cases must be self-contained and should
include details of activities proposed to be undertaken,
breakup of costs in respect of each activity, bio-data of
professionals proposed to be engaged and duration of time
required for completion.
75% reimbursement to MSME unit for adoption of Bar Code.
IMPLEMENTATION OF THE SCHEME
The scheme shall be implemented by the Export Promotion and Marketing Division of the Office of DC(MSME). Application forms are enclosed with these guidelines and are also available at MSME-DO's website at www.dcmsme.gov.in. At the start of each financial year, the Office of DC(MSME) shall hold a joint meeting with NSIC, SIDBI and the Ministry of Commerce to ensure that no duplication of funding or overlap occurs in the implementation of the scheme. The MSME MDA Committee shall also identify thrust commodities and thrust regions to be focussed on during the year.
Applications received in respect of each fair/event will
be placed before the MSME - MDA Committee which shall meet
at least a week to ten days before the start of the fair/event.
The Committee shall be headed by the Development Commissioner
(MSME) and shall include as its other members a representative
from FIEO, a representative from the IF Wing attached to the
Ministry of MSME&ARI, Director (Board & Policy) JDC (WTO)
and JDC (EP&M)in the Office of the DC(MSME) and the Director
(WTO) in the Office of the DC(MSME). The Director (EP&M) in
the Office of the DC(MSME) shall be the Member Secretary.
Check list of documents to be enclosed with application form and claim form
FORM-I Application form for participation in fair/study tours/trade Delegation
FORM-II Claim form for participation in fair/study tour
- Pre-receipt (Form-III).
- Photocopy of passport showing departure from India and return to India, visa, country/countries visited.
- Original air ticket.
- Report on participation etc.
FORM-IV Application form for assistance
FORM-V Claim form for publicity
- Pre-receipt (Form-III)
- Actual copy of publicity material.
- Copy of payment voucher/receipt from vendor/printer.
Application form for reimbursement of one
time registration fee for adoption of bar code from GS1
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