Scheme for market development




Scheme for market development

The Ministry of Micro, Small and Medium Enterprises (MSME)  already implements schemes/programmes   for   export   promotion  for  market  development.     The brief details are:

The details of various schemes implemented by Ministries/Departments are as follows:
Schemes/Programmes for Export Promotion:


1.                  Ministry of Micro, Small and Medium Enterprises

            International Cooperation Scheme: This scheme is being implemented by the Ministry under which financial assistance is provided on reimbursement basis to the State/Central Government organizations, industries/enterprises Associations and registered Societies/trusts and organizations associated with MSME for  deputation of MSME business delegation to other countries for exploring new areas of MSMEs , participation by Indian MSMEs in international exhibitions, trade fairs, buyer-seller meet and for holding international conference and seminars which are in the interest of MSME sector.  Eligible beneficiary organizations can apply to the Ministry directly to avail the assistance under the Scheme as per scheme guidelines.

2.         Office of Development Commissioner (MSME)

  (i)       Marketing Development Assistance Scheme aims to encourage Small & Micro exporters in their efforts at tapping and developing overseas market, enhance the exports from Micro / Small manufacturing enterprises  and popularize the adoption of Bar Coding on a large scale. For adoption of Bar Code, the Government of India provides   reimbursement of 75% of one time registration fee (w.e.f. 1st January 2002) and 75% of annual fees (recurring) (w.e.f. 1st June 2007) paid to GS1 India (Formerly EAN India) by Small & Micro units for the first three years for bar code.
            Under International Trade Fair Scheme, the Government of India provides 75% of air fare subsidy by economy class and 50% space rental subsidy for Micro & Small manufacturing enterprises of General category entrepreneurs. For Women/SC/ST Entrepreneurs & Entrepreneurs from North Eastern Region, 100% reimbursement of space rent and economy class air fare is being done. The subsidy is restricted to Rs.1.25 lakhs per unit.
  (ii)      Export Promotion Scheme (training programmes on packaging for export) to create consciousness about the packaging and to educate the MSEs entrepreneurs about the scientific  packaging  techniques,  and to improve their packaging standards, latest design of packaging technology, this office has been organizing specialized training programmes on packaging for exports since 1979 for small scale industries, in collaboration with Indian Institute of Packaging (IIP) or similar Institutes/Organisations of repute.
3.         Nation Small Industries Corporation ( NSIC)

            Marketing Assistance Scheme: This scheme is being implemented by the Nation Small Industries Corporation ( NSIC) on behalf of M/o MSME to provide marketing support to Micro, Small and Medium Enterprises and to enhance the competetitiveness and marketability of their product through the activities like participation in International Exhibitions/Trade Fairs held in foreign countries, organizing domestic exhibitions and participation in exhibitions/trade fairs in India, support for co-sponsoring of exhibitions organized by other organizations/industry associations/agencies, buyer-seller meets, Intensive campaigns, Marketing Promotion Events and other support activities.
4.         Coir Board
            The Coir Board implements Export Market Promotion Scheme of the Ministry.  Under this scheme, programmes like sponsoring delegations, participation in seminars, organizing workshops for capacity building, participation in international fairs, undertaking publicity efforts for product and market education on coir, grant of financial support for market exploration activities, presentation of coir industry awards for excellence in various fields of activities etc. are implemented.

A.    The details of fund allocated are as under :




This information was given by the Minister of State, Micro, Small and Medium Enterprises, Shri Kalraj Mishra in a written reply to a question in Rajya Sabha today.

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Development of KVI industries in different areas

Khadi and Village Industries commission (KVIC) has been implementing a number of schemes for the holistic development and promotion of khadi and village industries(KVI) sector in the country including border areas, hilly areas, LWE affected areas and coastal regions, which include:


(i) Market Development Assistance (MDA) under which assistance is provided@ 20% of value of production khadi and polyvastra to be shared among artisans, producing institutions and selling institutions in the ratio 25:30:45.

(ii) Interest Subsidy Eligibility Certification (ISEC) scheme for providing bank loans for khadi and polyvastra at subsidized rates of interest.

(iii) Workshed Scheme for Khadi Artisans for providing assistance for construction of worksheds.


(iv) Scheme of Fund for Regeneration of Traditional Industries (SFURTI) under which assistance for replacement of obsolete equipments, setting up common facilities centres, product development, market promotion and other support are provided in clusters.

(v)       Strengthening Infrastructure of existing Weak Khadi Institutions and Assistance for Marketing Infrastructure envisaging renovation of khadi sales outlets and providing assistance for strengthening infrastructure of existing weak selected institutions.

(vi)       Khadi Karigar Janashree Bima Yojana to provide insurance cover to khadi artisans.

(vii)      Khadi Reform and Development Programme (KRDP) to revitalize the khadi sector with enhanced sustainability of khadi, increased incomes and employment for spinners and weavers, increased artisans’ welfare and achieve synergy with village industries.

Government has also launched KVI Programme in the Hill, Border & Left Wing Extremism (LWE) affected areas in respect of 100 institutions with financial assistance amounting to Rs.76 crores i.e. Rs.76 lakh/institution under KRDP, in which relaxation is given in criteria of selection of institutions and in minimum number of artisans associated with the institution of Hill, Border & LWE affected areas.

In addition, the Ministry of Micro, Small and Medium Enterprises(MSME) has also been implementing a major credit-linked subsidy programme named Prime Minister’s Employment Generation Programme (PMEGP) being implemented through Banks since 2008-09 with KVIC as nodal agency at the national level for generating employment in the Country including border areas, hilly areas, LWE affected areas and coastal regions by setting up of micro-enterprises in the non-farm sector. Under PMEGP, general category beneficiaries can avail of margin money subsidy of 25% of the project cost in rural areas and 15% in urban areas.  For beneficiaries belonging to special categories such as scheduled castes, scheduled tribes, OBCs, minorities, women, ex-servicemen, physically handicapped, beneficiaries belonging to North Eastern Region, hill and border areas, etc.,  the margin money subsidy is 35% in rural areas and 25% in urban area. The maximum cost of project is Rs.25 lakh in the manufacturing sector and Rs.10 lakh in the service sector.

The release of margin money subsidy which is treated as target as also the achievements in term of the margin money subsidy utilized, the corresponding number of projects assisted and estimated employment generated under PMEGP in Maharashtra since inception i.e 2008-09 to 2014-15 are given below:



This information was given by the Minister of State, Micro, Small and Medium Enterprises, Shri Kalraj Mishra in a written reply to a question in Rajya Sabha today.

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Collateral free funding to Micro and Small business

The Credit Guarantee Fund Scheme for Micro and Small enterprises was launched by the Government to give impetus to the young entrepreneurs in the micro and small scale industries. The scheme is being operated by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) set up jointly by the Government of India and Small Industries Development Bank of India (SIDBI). The objective of the scheme is to make available collateral free credit facility (term loan and/ or working capital) extended by eligible lending institutions to new and existing micro and small enterprises up to Rs. 100 lakh per borrowing unit. The corpus of CGTMSE is contributed by the Government of India and SIDBI in the ratio of 4:1. At present, 133 eligible institutions comprising 26 Public Sector Banks, 21 Private Sector Banks, 73 Regional Rural Banks (RRBs), 4 Foreign Banks and 9 other institutions have become Member Lending Institutions (MLIs) of CGTMSE for participating under the Credit Guarantee Scheme. As on March 31, 2015, cumulatively 18,17,245 proposals for an amount of Rs. 90,445.90 crore have been approved.

This information was given by the Minister of State, Micro, Small and Medium Enterprises, Shri Kalraj Mishra in a written reply to a question in Rajya Sabha today.

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Government welfare schemes to provide employment

The Ministry of Micro, Small and Medium Enterprises (MSME) through Khadi and Village Industries Commission (KVIC) has been implementing a credit-linked subsidy programme named Prime Minister’s Employment Generation Programme (PMEGP) from 2008-09 for generating self-employment and wage-employment. Under PMEGP, margin money subsidy is provided for setting up micro-enterprises in the non-farm sector in the country by people including women in the rural, tribal and backward areas. Under the programme, special category beneficiaries including women, are provided margin money subsidy at a higher rate of 35 per cent in rural areas and 25 per cent in urban areas as compared to 25 per cent and 15 per cent respectively for general category. The maximum cost of project is Rs 25 lakh in the manufacturing sector and Rs 10 lakh in the service sector. State-wise number of projects by women entrepreneurs assisted, along with corresponding utilization of margin money subsidy under PMEGP during last three years and current year is given at Annex I.



The Ministry of MSME implements a number of other schemes for development of MSME in the country including those to provide employment to people including women in the rural, tribal and backward areas. In particular, the Ministry through Coir Board implements the Mahila Coir Yojana which provides self-employment opportunities to the rural women artisans including those in the backward and coastal areas of the country. The scheme envisages in distribution of motorized ratts to women artisans after giving training for spinning coir yarn. State-wise number of women trained and funds provided by Coir Board under Mahila Coir Yojana during last three years and current year is given at Annex II.



Development Commissioner (MSME) under this Ministry  also implements a women-oriented scheme  named Trade Related Entrepreneurship Assistance and Development (TREAD) which envisages economic empowerment of illiterate and semi-literate women through trade-related training, information and counseling extension activities related to trades, products, services etc. The Scheme provides for loans through NGOs who are provided grants for capacity building. This assistance is provided for self-employment ventures by women for pursuing any kind of non-farm activity. The State-wise grant provided and number of women benefited under TREAD Scheme during the last three years and current year is given:



This information was given by the Minister of State, Micro, Small and Medium Enterprises, Shri Kalraj Mishra in a written reply to a question in Rajya Sabha today.

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Growth rate registered by MSME sector

The Government monitors the growth in Micro, Small and Medium Enterprises (MSME) sector in the country by conducting All India Census of the sector, periodically. As per the latest Census (Fourth Census), conducted (with base reference year 2006-07), wherein the data was collected till 2009 and results published in 2011-12, as well as data extracted from Economic Census 2005 conducted by Central Statistics Office, Ministry of Statistics & Programme Implementation, for activities excluded from Fourth Census, namely wholesale / retail trade, legal, educational & social services, hotel & restaurants, transports and storage & warehousing (except cold storage), the details of total number of MSME and the growth rate, as compared to Third All India Census of Small Scale Industries (conducted with base reference year 2001-02) are given in Annexure-I.



The growth rate of new units established during 2007-08 to 2013-14, as per the number of Entrepreneurs Memorandum Part-II indicating commencement of operation (filed under Micro, Small and Medium Enterprises Development Act, 2006 at District Industries Centres of State / UTs Commissionerates / Directorates of Industries), State / UT-wise, is given:

State-wise Annual Growth Rate of Number of Entrepreneurs Memorandum (Part-II)



The Government is aware of the problems being faced by the MSME sector in the country which relate to credit, infrastructure, technology, marketing, skill development etc.

The Government is implementing various Schemes and programmes such as Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Cluster Development Programme, National Manufacturing Competitiveness Programme, Prime Minister’s Employment Generation programme, etc. in order to address various problems faced by the MSME sector.


This information was given by the Minister of State, Micro, Small and Medium Enterprises, Shri Kalraj Mishra in a written reply to a question in Rajya Sabha today.

Scheme for market development Scheme for market development Reviewed by Ajit Kumar on 5:49 PM Rating: 5

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