Export Promotion Programmes / Measures

Participation in International Fairs/Exhibitions

With a view to ensure that exporters from small scale sector exhibit their products in the
International Exhibitions, required assistance & support is provided. Expenditure on
account of space rent, handling and clearing charges, insurance and shipment charges etc.
Are met by the office of the Development Commissioner (Small Scale Industries) under
one of the plan schemes. During 1998-1999, O/o the DC(SSI) participated in the 7
International Trade Fairs/ Exhibitions namely 2nd SAARC Trade Fair, Colombo, Sri
Lanka, Dakar International Trade Fair, Dakar, Senegal, Quang Trung International Trade
Fair, Ho-chi Minh City, Vietnam, International Hardware Fair, Cologne, Germany,
Tehran International Trade Fair, Tehran (Iran), Indian Trade Exhibition, Dhaka
(Bangladesh). Participation in the named fairs/exhibitions generated large number of
Trade enquiries besides certain export orders. It also provided an opportunity to SSI units
to display their products in the world market. During the current financial year, it is
proposed to participate in 8-9 International fairs/ exhibitions. The basic objective behind
this scheme is that SSI units which otherwise are not in a position to display their
products may participate in foreign exhibition/fairs so as to promote their exports.
Enquiries generated during such exhibitions abroad are disseminated to all SSI units
through a net work of field offices of this organisation. This strategy has been found to be
successful for exporters from small scale sector in identifying new foreign
buyers/markets.

Packaging for Exports

Role of packaging for exports has gained much significance in view of trends in the
world markets. The need for better and scientific packaging for exports from small sector
was recognised long back. With a view to acquaint SSI Exporters of the latest Packaging
standards, techniques etc. training programmes on packaging for exports are organised in
various parts of the country. These programmes are organised in association with Indian
Institute of Packaging which has requisite expertise on the subject. During 1998-99, O/o
the DC(SSI) organise 17 such Training Programmes. It is proposed to conduct 25 such
Training Programmes during the current financial year. Basic objective of these
programmes is to generate the much needed consciousness in the industry and to educate
the entrepreneurs about the scientific techniques of Packaging.

Technical & Managerial Consultancy Services

Technical & Managerial Consultancy Services to the SSI manufacturers/exporters is

provided through a net work of field offices of this office so as to ensure higher level of
production and generation of higher exports.

National Awards for Quality Products

With a view to encourage the small scale units for producing Quality goods, National
Awards for Quality Products are given to the outstanding small scale units, who have
made significant contribution for improving quality of their products. The scheme is
being operated since 1986. Winners of National Awards get a Trophy, a Certificate and a
Cash Prize of Rs.25,000/-. National Awards encourage Small Scale Industries units to
produce quality goods which further enables them to enter into export market.

Marketing Development Assistance

Marketing Development Scheme (MDA) is being operated by Ministry of Commerce

under which MDA is given to exporters through FIEO and Export Promotion Councils/
Commodity Boards to plan their marketing strategy for export growth. Guidelines in
respect of single person sale-cum-study tours abroad and participation in fairs/ exhibition
abroad have been revised with effect from 1st May, 1999. The revised scheme, is as
under :-

(i) Eligible activities:-

• - One person sale-cum-study tour(s) abroad

- Participation in fairs/ exhibitions abroad.

(ii) Eligible exporters :-

• - Status Holder exporters namely Export Houses, Trading Houses etc. They would
be eligible to get MDA through FIEO.
- Small Exporters who are not status holders but are eligible to get the Special
Import License (SIL) under Para 11.11 (a&b) of the Hand Book of Procedures
1997-2002. Such exporters would be eligible to get MDA through their respective
EPCs/Commodity Boards.

(iii) Quantum of Assistance:-

• Sales-cum-Study Tour(s) abroad:-

MDA would be limited to 90% of the actual fare for SSI Exporters and 75% for
other than SSI exporters with upper ceiling of Rs. 60,000/- in all cases for travel
in economy class.

Participation in Fairs/Exhibitions abroad:-

• MDA would be available on actual fair in economy class and space rent including
decoration, electricity, water etc. Only and would be limited to 90% of the total
expenditure on above mentioned items for SSI exporters and 75% for other than
SSI exporters with combined upper ceiling of Rs.90,000/- in all cases.

(iv) Number of activities permissible :-

• MDA would be provided for a maximum of 3 activities in a financial year,

combined both for sale-cum-study tour abroad and participation in
 fairs/exhibitions abroad subject to the condition that not more than two activities
would be allowed in a financial year either in sales-cum-study tour or in
participation in fairs/exhibition abroad.

Second activity in a financial year of either of the activities indicated at sub-para (I)
above would be permissible only to those exporters who have achieved a minimum 5%
export growth in their global exports during the preceding financial year. One additional
sale-cum-study tour or participation fairs/ Exhibition in Latin American Countries (LAC)
Region would be permissible without any minimum export growth restriction in a
financial year to Status Holder's exporters only.
NOTE : Ministry of Commerce, MDA Section may be approached for other
conditions/guidelines, payment terms, documents to be submitted etc. Their Circular No.
1(3)/99-MDA dated 28/4/1999 refers.

Awards to exporters

Ministry of Commerce gives awards to exporters for their outstanding export

performance, under the scheme of National Export Award for export performance.
Earlier, a total of 17 Awards including 5 Awards for Small Scale Sector in the form of
Trophy were given every year. However, from the year 1997-98 and onwards, the
number of awards have been increased to 20, out of which the number of Awards
(Trophy) earmarked for small scale sector have been increased from 5 to 8. Upto 8
awards will be given to the exporters in the small scale and cottage sector subject to
achievement of normative level of performance by the concerned SSIs and cottage sector
units. Out of 8 Awards., one will be given for Khadi & Village Industry.

Promotional Schemes

To meet the challenges of international competition and to promote exports of SSI

products, following promotional schemes are also being implemented.

(i) Technology Development and Modernization Fund Scheme

Small Industries Development Bank of India (SIDBI) has been implementing a scheme of
technology development and modernisation of SSI units with effect from April, 1995.
Under this scheme assistance is available for meeting the expenditure on purchase of
capital equipment, acquisition of technical know-how, upgradation of process technology
and products with thrust on quality improvement, improvement of packaging and cost of
TQM and acquisition of ISO-9000 series certification. The coverage of the scheme has
been enlarged from export oriented units to non-exporting units also in September, 1997.
Under this Scheme a sum of Rs. 152 crores has been sanctioned for 245 units by April,
1999.

(ii) Quality Awareness Scheme

Small Industries Service Institutes organising Workshop on ISO-9000 certification and
awareness about quality.

(iii) Subsidy for obtaining ISO-9000 quality Certification

Under the scheme of promoting ISO-9000 certification SSIs are given financial support
by way of reimbursing 75% of their expenditure to obtain ISO-9000 certification subject
to a maximum of Rs.75,000/-. Till 1998-99, number of units assisted is 381 and amount
released is Rs. 207.5 lakhs. The scheme is being continued during Ninth Plan.

(iv) Other Schemes for technology improvement

Tool Rooms:

Tool Rooms provide toolings, dies, moulds and fixtures to small scale units at a very low
price to enable them to produce quality goods to meet the requirements of supplies of
components to large units as well as produce quality goods for direct sale. This enhances
their competitiveness and export potentials. There are 10 Tool Rooms established in
various parts of the country.

Process-cum-Product Development Centres :

There are 7 Process-cum-Product Development Centres. These Centres take up jobs from
SSIs for specific product development as well process development to improve the
quality of products, reduce cost of product and enhance marketability of goods. These
Centres deal with specific product groups.

UPTECH:

A new scheme for technology upgradation for industrial clusters has been started
recently. 10 clusters of industries producing different groups in various parts of country
have been selected. The scheme aims at diagnostic study of the clusters, identification of
technological needs, technological intervention and wider dissemination of information
and technology within the clusters. The expenditure involved on pilot plants etc. Is to be
met on 50:50 cost sharing basis by the Government and the concerned Industry
Association of the clusters. The scheme is flexible and provides for smooth sourcing of
technology even from abroad.