Export Boost: MSMEs Gain from International Cooperation Scheme

The Government has taken measures to promote exports from the districts under the District Export Hub Initiative. It includes identification of products and services with export potential in all the districts of the country including Gujarat

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The Ministry of Micro, Small and Medium Enterprises is implementing ‘International Cooperation Scheme’ under which, financial assistance is provided to Micro, Small and Medium Enterprises (MSMEs) to promote export from them. The scheme covers all the districts of the country. The brief details of the scheme including financial assistance to MSMEs are attached at Annexure-I.

Apart from above, other initiatives of Government support to MSMEs for promotion of export from them-

The Government has taken measures to promote exports from the districts under the District Export Hub Initiative. It includes identification of products and services with export potential in all the districts of the country including Gujarat, in consultation with all stakeholders including the States/UTs. An institutional mechanism has been set up in all States/UTs by forming the State Export Promotion Committee (SEPC) and District Export Promotion Committee (DEPC) at the District level. Under the initiative, District Export Action Plans detailing the existing bottlenecks in the supply chain and identifying possible interventions to mitigate the existing gaps are being prepared for all the districts. These outline the support required by the local exporters and manufacturers in producing/ manufacturing identified products in adequate quantity & with requisite quality and branding, for reaching potential buyers outside India.

To encourage exports from the districts under "Districts as Export Hubs", DGFT through Regional Authorities has been engaging with States & Districts to conduct export promotion outreach events. This includes handholding sessions with exporters and export related awareness sessions.

ii. The new definition of MSMEs w.e.f. 01.07.2020, provisions that the export turnover of Udyam Registered enterprises shall not be counted in the turnover of enterprises for deciding their category as micro or small or medium. This helps the MSMEs to export more without crossing their limit of turnover in the present category as micro or small or medium.

iii. 59 Export Facilitation Centres set up by the Ministry across the country in its field offices are providing hand holding support to MSMEs for export promotion.

 

iv.  Dak Ghar Niryat Kendra, serves as a one-stop destination for exporters, providing comprehensive assistance and streamlined processes for export-related documentation, logistics, customs procedures and packing.

v. The One District One Product (ODOP) initiative, aims to promote at least one Product from each District (One District – One Product) of the country for enabling holistic socio-economic growth across all regions. The ODOP Initiative has identified more than 1100 products encompassing various sectors such as textiles, agriculture, food processing, handicrafts, and more, from all 761 districts of the country.

Under the International Cooperation Scheme, 10058 MSMEs in 2022-23 and 4032 MSMEs during 2023-24 up to 13.12.2023 have provided financial incentives.

The total number of MSMEs benefitted under International Cooperation Scheme in Gujarat are as follows:

Financial Year

Amount released (in Rs)

No. of MSMEs benefited

2022-23

1525857

1822

2023-24

(upto 13.12.2023)

1957533

300

 

Annexure-I

 

The brief about financial incentives under International Cooperation Scheme are as follows:

Interventions

Scale of Assistance

Registration-cum-Membership Certificate (RCMC) charges/fee paid by the first-time exporter to related Export Promotion Councils.

75 percent of the cost paid subject to a maximum of Rs. 20,000/- or actual, whichever is lower subject to quarterly reporting by EPCs as per prescribed format.

Export Insurance Premium paid to Export Credit Guarantee Corporation (ECGC) under the ECGC’s Small Exporter Policy

Maximum reimbursement in a financial year of Rs. 10,000/- or actual, whichever is lower subject to quarterly reporting by ECGC as per prescribed format.

Fee paid on Testing & Quality Certification acquired by MSEs to Export Products

 

 

75 percent of the testing and quality certification with a ceiling of Rs. 1.00 Lakh or actual, whichever is lower, subject to following conditions:

  • Reimbursement allowed for a maximum of 3 certificates per financial year with a ceiling of Rs. 1.00 Lakh per MSE unit.

  • Certificate, for which reimbursement claim is requested, should be attained within the same financial year.

 

MSMEs Growth Export Boost