For Indian Micro, Small, and Medium Enterprises (MSMEs), the horizon of opportunity extends far beyond domestic borders. However, the costs associated with international marketing, airfare, and exhibition stalls can often be prohibitive. The International Cooperation – IC Scheme, implemented by the Ministry of MSME, serves as a vital bridge, providing financial assistance to help smaller businesses explore global markets and adopt international best practices.
What is the International Cooperation – IC Scheme?
The IC Scheme is designed to enhance the competency of MSMEs by facilitating their participation in international exhibitions, trade fairs, and buyer-seller meets. It also supports the organization of international conferences and seminars within India to foster technology transfers and bilateral trade relations.
Objectives of the IC Scheme
The primary aim of the International Cooperation Scheme is to:
- Promote export-oriented growth of MSMEs
- Facilitate technology transfer and collaborations
- Enhance global competitiveness of Indian businesses
- Build international partnerships and networks
- Showcase Indian MSME products in global markets
Key Components of the Scheme
The scheme is broadly divided into three primary interventions, each targeting a specific aspect of global engagement:
- Market Development Assistance (MDA): Financial support for MSMEs to participate in international trade fairs and exhibitions abroad. This includes reimbursement for airfare, space rent, and freight charges.
- Capacity Building of First-Time Exporting MSMEs (CBFTE): A specialized sub-component aimed at encouraging new exporters. It helps offset costs related to RCMC (Registration Cum Membership Certificate), export insurance premiums, and testing/certification charges for international markets.
- Framework for International Market Intelligence: Supporting the creation of a database and intelligence reports that help MSMEs understand foreign market trends, standards, and demand.
Financial Benefits for MSMEs
The IC Scheme offers significant budgetary support to ease the financial burden of going global:
- Participation in International Exhibitions: Reimbursement of up to 100% of economy class airfare (capped at specific amounts per country) and 80% of space rent for MSME units.
- Study Tours & Delegations: Support for sending representatives abroad to study new technologies and manufacturing processes.
- Organizing Events: Financial assistance for industry associations to organize international-level seminars and workshops in India that benefit the MSME sector.
Eligibility Criteria
To avail benefits under the IC Scheme:
- Applicant must be a registered MSME in India
- Industry associations, export promotion councils, and organizations can also apply
- MSMEs should have a valid Udyam Registration
- Preference is often given to:
- Export-oriented units
- Women-led enterprises
- SC/ST entrepreneurs
How to Apply
To leverage these benefits, MSMEs usually apply through an eligible organization, such as:
- Registered Industry Associations.
- Central or State Government Organizations.
- Societies or Trusts associated with MSME development.
Individual MSMEs can also apply directly for certain sub-components like the CBFTE via the official MSME portals by providing their Udyam Registration details.
Tips to Maximize Benefits
- Choose target markets strategically
- Prepare a strong product presentation and branding
- Ensure compliance with international quality standards
- Follow up with leads after the event
- Leverage government export support platforms
FAQs
1. What is the International Cooperation Scheme for MSMEs?
It is a government scheme that provides financial assistance to MSMEs for participating in international trade fairs and business delegations.
2. Who can apply for the IC Scheme?
Registered MSMEs, industry associations, and export promotion organizations in India can apply.
3. What expenses are covered under the IC Scheme?
The scheme covers airfare, stall rent, freight charges, and daily allowances.
4. How does the IC Scheme help MSMEs?
It helps MSMEs connect with global buyers, explore export markets, and increase international visibility.
5. Is Udyam Registration mandatory for IC Scheme?
Yes, MSMEs must have a valid Udyam Registration to avail benefits.