Contributing almost 27% of the nation’s GDP, the Micro, Small, and Medium Enterprises (MSMEs) segment emerges as the backbone of India’s business ecosystem.
Over the last few years, MSMEs have grown significantly, with more individuals registering their own businesses under this category. Data shows that total MSME registrations have increased from 28.5 Lakhs in 2020 to more than 1.5 Cr in 2023.
The Indian government is keen on further elevating the MSME sector and has introduced targeted support programs for MSME entrepreneurs to enhance their businesses. One such initiative is the Market Development Assistance (MDA) Scheme, designed to the growth of MSMEs with funding assistance.
Read on to better understand the benefits of this initiative and find out how you can apply for this scheme as well.
Understanding Market Development Assistance Scheme
Overseen by the Ministry of Commerce, the Market Development Assistance Scheme is a government initiative that aims to aid the nation’s MSME sector. The scheme is specifically designed to help small and medium-sized businesses to tap into and expand in the global markets.
We are all aware of the importance of marketing in the growth and development of a particular business. Without proper utilisation of this strategic tool, most of the products and services offered by a business run the risk of going unnoticed.
While large businesses often have the resources required to properly market their products, small and medium-sized businesses often lag in that aspect. Even if their product is better than the larger enterprise, most MSMEs fail to grow because of a lack of customer attention to their goods.
The Market Development Assistance scheme seeks to provide that support to the MSME segment. This initiative empowers small businesses by providing them with apt support to participate in international trade fairs and exhibitions. This includes a subsidy for airfares and space rental costs, sector-wise market studies, and 75% reimbursement of registration fees.
Through these subsidies and assistance, the government is seeking high level of participation from MSME entrepreneurs in trade events. By showcasing their products in such events, businesses have better opportunities to market themselves. Ultimately, greater marketing will open avenues for increased exports at a global scale.
Features of the Market Development Assistance Scheme
Before you take any further steps, make sure you understand the following features of the Market Development Assistance Scheme:
1. Only units with a valid permanent registration with the Directorate of Industries can take advantage of the MDA scheme.
2. The final selection of the manufacturing units will be undertaken by MSME-DI after careful consideration of the product profile, trade fair motive, and space availability.
3. The benefits of the MDA scheme can only be availed once a year.
4. The subsidy on airfare can be availed by only one individual from the participating business.
5. If the spaces are booked a month in advance, then the participating business only has to pay 50% of the rental charges at the trade fair/exhibition.
6. Women entrepreneurs of the SC/ST segment or belonging to the Northeastern region do not have to pay any rental charges.
7. The representative of the participating MSME business must carry their own samples for display at the trade fair/exhibition.
Objectives of the Market Development Assistance Scheme
The marketing development assistance scheme was implemented to fulfil specific goals and objectives. These are:
1. To encourage and assist MSME entrepreneurs in tapping into the international markets.
2. To boost representation from MSME entrepreneurs in various international exhibitions and trade fairs.
3. To enhance exports from MSME businesses and increase participation at a global stage.
4. To popularise and boost the adoption of Bar coding at a large scale.
Eligibility Criteria
MSME entrepreneurs or industries can avail of the MDA scheme for exporters after they meet the following eligibility criteria:
1. The applicant must be registered with their respective Act. For instance, societies must be registered under the Societies Act, companies should be registered under the Companies Act, and so on.
2. The applicant’s business must have the last 3 years’ regular audited accounts.
3. The applying organisation must primarily focus on the promotion and development of MSMEs.
4. Financial aid will only be granted for events that fall under the approved list of trade fairs and exhibitions formed by the Ministry of MSME.
Documents Required to Apply for MDA Scheme
To avail of the benefits offered by the MDA scheme, applicants must have the following documents ready:
1. Application form
2. Estimated budget
3. Business registration certificate
4. Memorandum and articles of association
5. Profit & loss account/Audited balance sheet/Income & expenditure account of the last 3 years
How to Apply for MDA Scheme
To apply for the Market Development Assistance Scheme, you need to follow these steps:
1. Visit the official website of the International Corporation Scheme and select the Market Development Assistance Option.
2. If you are a new user, register yourself on the web portal.
3. Depending on the type of organisation you are registered with, you need to select one of the two options: Niti Ayog NGO Darpan or Govt Institute/PSU/Autonomous Body.
4. Complete the registration process and avail your User ID and password that is sent to your registered email address.
5. Log in and fill up the application form with the required details. Once done, you need to hit submit.
The Bottom Line
The Market Development Assistance Scheme stands as a testament to the government’s commitment to nurturing the growth of the country’s MSME segment. From providing financial aid to marketing assistance, the MDA scheme allows small businesses to penetrate the international markets.
If you also have the zeal to be a successful entrepreneur, kickstart your new business venture by securing an MSME loan with Tata Capital. Renowned for its competitive interest rates, streamlined application process, and quick fund disbursement, Tata Capital business loans is your gateway to a successful entrepreneurial journey.
13 June 2024
5 mins read
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