Marketing Assistance Scheme - Objectives

Marketing Assistance Scheme – Objectives

Question - Marketing Assistance Scheme is one of many new MSME initiatives for economic development. Discuss the objectives of this scheme.

• Micro, Small and Medium enterprises sector is a leading economic sector

• It is a dynamic sector of the Indian economy

• This sector provides large employment opportunities for lower capital cost

• It also assists in industrialisation of rural and backward areas

• MSMEs complement larger industries as ancillary units

• They also contribute to the socioeconomic development of the region

• Marketing is critical for survival of MSMEs

• Marketing Assistance Scheme/MAS is the broad scheme proposed for ensuring timely aid to MSMEs

Objectives of Marketing Assistance Scheme

• Enhance marketing capabilities as well as competitiveness of MSMEs

• Showcasing competencies of MSMEs

• Updating MSMEs about current market scenario and impact on activities

• Facilitating the formation of consortia of MSMEs for marketing products and services

• Providing platform for MSMEs to interact with major institutional buyers

• Disseminate programmes of the government

• Improve the marketing skills of MSMEs

• As per this scheme, marketing support is provided to MSMEs through National Small Industries Corporation/NSIC and enhance competitiveness and viability of products

• International technology exhibitions are also organised by NSIC in foreign countries

• Exhibitions may be organised in conjunction with concerned stakeholders and industry associations

• Such expositions also

- Showcase diverse technologies
- Provide business opportunities to MSMEs
- Establish JVs
- Initiate technology transfers and marketing arrangements
- Promote image building of Indian MSMEs in foreign nations
- Facilitate participation of Indian MSMEs in select global exhibitions and trade fairs
- Enhance business prowess and expose MSMEs to internationally competitive trade practices
- Provide a platform for MSMEs to meet and discuss business and technical partnerships

Facts and Stats

• MSMEs play a vital role in overall economy and account for 80% of total number of industrial enterprises

• They produce over 8000 value added products

• Sector accounts for 45% of manufacturing output and 40% of total export of the nation

• It employs around 6 crore persons

• MSMEs have registered higher growth rate compared to overall industrial sector

• Labour intensity in MSME sector is 4 times higher than larger enterprises