Revised Guidelines of MSME International Cooperation Scheme

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Revised Guidelines of MSME International Cooperation Scheme

The Ministry of Micro, Small, and Medium Enterprises (MSMEs) has approved the continuation of the International Cooperation (IC) Scheme for the next financial cycle from 2021-2022 to 2025-2026. The Circular dated 19th August 2021 stated that the ministry has revised the guidelines of the IC Scheme which will now have three sub-components such as:

  • Market Development Assistance (MDA) – (both Physical and Virtual Mode)
  • Capacity Building of First Time Exporters (CBFTE)
  • Framework for International Market Intelligence Dissemination (IMID)

In this article, we will look at the Revised Guidelines of MSME International Cooperation Scheme 2021 in detail.

The Gist of MSME Circular

  • MSME released the guidelines for Sub-Component-1 i.e. Market Development Assistance (MDA for information and necessary action by all concerned.
  • It is also informed that guidelines for the remaining two Sub-Components will be circulated after completion of background work for their operationalization.

For more details on Market Development Assistance (MDA), Click here

The objective of the International Cooperation Scheme

The key objective of the International Cooperation Scheme is to capacity build MSMEs for entering the export market by facilitating their participation in international exhibitions, fairs, conferences, seminars, and buyer-seller meets abroad.

Features of International Cooperation Scheme

  • International Cooperation Scheme provides MSME with actionable market intelligence and reimbursement of various costs involved in the export of goods and services.
  • The Scheme provides opportunities to MSMEs to continuously update themselves to meet the challenges emerging out of changes in technology, changes in demand, the emergence of new markets, etc.
  • All components of the scheme aimed at various aspects required to advance MSMEs position as emerging export players.

Sub-components of International Cooperation Scheme

As mentioned above, the revised IC Scheme will now have three sub-components such as:

  • Market Development Assistance (MDA) – (both Physical and Virtual Mode)
  • Capacity Building of First Time Exporters (CBFTE)
  • Framework for International Market Intelligence Dissemination (IMID)

Sub-Component I: Market Development Assistance of MSMEs (MDA)

Physical Medium

  • Participation of MSME delegations of industry associations and government organizations, involved in the promotion of MSMEs, in international exhibitions, trade fairs, and buyer-seller meet in foreign countries for exploring potential markets for exports, seeking joint ventures, awareness about latest technologies, etc.
  • This subcomponent of the IC scheme is organizing international conferences, summits, workshops, seminars in India on themes relevant to MSMEs by the Industry Associations and Government organizations.
  • As part of this scheme, Ministry is also Organizing Mega international exhibitions, fairs, conferences, seminars, and buyer-seller meets abroad.
  • Ministry of MSME is Organizing Mega international conferences/ summits/ workshops/ seminars, bilateral/multilateral Government to Government Events in India

Note Its organizations are solely or in partnership with industry associations for the promotion of the MSME sector.

  • Participation of Ministry-led Industrial delegations to International Exhibitions/Fairs/Conferences in foreign countries.

Virtual Medium

  • Participation (as exhibitors) of MSME delegations of industry associations and government organizations, involved in the promotion of MSMEs, in international exhibitions, trade fairs, and buyer-seller meets by foreign organizers for exploring potential markets for exports, seeking joint ventures, awareness about latest technologies, etc.
  • Industry Associations and Government organizations are Organizing international conferences, summits, workshops, seminars on themes relevant to MSMEs
  • Ministry of MSME is Organizing Mega international exhibitions, fairs, buyer-seller meets, conferences, summits, seminars, workshops, bilateral, multilateral Government to Government Events

Note: Its organizations solely or in partnership with industry associations for the promotion of MSME sectors

Sub-Component II: Capacity Building of First Time MSE Exporters (CBFTE)

The scheme offers Reimbursement of costs incurred by first-time MSE exporters on export shipments.:

  • Registration-cum-Membership Certificate (RCMC) paid by the first-time exporters for registration with EPCs.
  • An export insurance premium paid by MSEs.
  • The fee is paid on Testing & Quality Certification acquired by MSEs to export products.

 This will encourage MSEs to produce and offer products and services of international standards for the export markets

Sub-Component III: Framework for International Market Intelligence Dissemination (IMID)

Provisioning a National Resource Database System — Global Market Intelligence System for MSME units.  This system is proposed to act as a central knowledge repository of export-related data on foreign markets.

  • It will provide simplified information on trade statistics, market access issues, and export potential indicators.
  • It will further provide information on tenders and procurements globally and export orientation of MSMEs through the provision of specially designed Orientation Courses by specialized government institutions actively involved in the area of foreign trade.

The official circular pertaining to the Revised Guidelines of MSME International Cooperation Scheme is attached here for reference:

Revised IC Scheme 2021-1

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Renu is experience content writer specialised in compliances and company rules.