The contribution made by the MSME sector to the State’s exports accounts to nearly 40%. Information Technology, Readymade garments, Jewellery, engineering, electronics, processed food, handicrafts, agarbathies, etc., are some of the sectors, where most of the exports have been achieved by small scale industries. Participation in Exhibitions and Trade fairs facilitates the MSME sector to overcome their challenges w.r.t marketing knowledge and provides them a platform for international trade. Exhibitions are accepted today as important tools in brand building and boosting of product sales. It provides an unique opportunity to showcase innovative products, attract visitors and market them.
Such participation not only helps in broadening the country’s technological and manufacturing capabilities, but also helps them to identify foreign partners for financial and technological collaborations. There are possibilities of technology transfer from State to other countries wherever we have a better technology. It also helps to gauge our products with international competitors and benchmark them. This also provides the scope for entrepreneurs to identify their strengths and weaknesses. The utility of such exhibitions in helping participants penetrate international markets has been proven.
The participation in State and National level exhibitions is a costly affair and it could be a financially challenging situation for the MSME Sector individually to participate without Government support. Therefore, there is an imperative need to support the MSME sectors for their participation in the exhibitions at the State / National/ International levels, so that they can take the advantage of such exhibitions. It also essential to have group participation in exhibitions / trade fairs organized by India Trade Promotion Organization (ITPO), Export Promotion Councils and other reputed organizations to facilitate for Buyer Sellers Meet.
Assistance to MSME sectors is provided by subsidizing the cost towards participation in National and International Exhibitions & Trade Fairs for promotion of Trade.
a) India International Trade Fairs
The India International Trade Fair (IITF), which is scheduled to be held every year from 14th -27th November at Pragati Maidan, New Delhi, is a multi product fair providing business opportunities for a wide range of products, technologies and services in diverse areas. The Fair covers capital goods, consumer electronics, textiles, clothing and handicrafts etc., and projects the technological advancements achieved by the country in various sectors, viz., Industry, Agriculture, Telecommunications, Electronics, and Services etc.
Over 1.5 lakh business visitors and 30 lakh general visitors approximately, including foreign visitors converge at IITF. This single largest forum in the Country provides an excellent opportunity for direct interaction with prospective local / overseas clients and to gain maximum global exposure which may fructify into joint ventures, upgradation of technology, export / import as well as exchange of ideas. The IITF is thus a very opportune ground for test marketing new products/ services and for consolidation of business exchanges.
The KARNATAKA PAVILION at IITF is organized by Visvesvaraya Trade Promotion Centre (VTPC), under the aegis of the Directorate of Industries and Commerce, Govt. of Karnataka. MSME sectors are provided with stalls at subsidized rentals besides free transport facilities for their products to IITF, New Delhi.
b) National Level Exhibitions
On behalf of Government of Karnataka, VTPC participates in exhibitions within the State and outside for promotion of trade. The primary objective is to encourage local industries to participate in the exhibitions and help the entrepreneurs to showcase their innovative products and to commercialize their products.
VTPC organises the Karnataka State Pavilion at the exhibition by taking the stalls in bulk from the organizers and offering the same to the industries across the State at subsidized stall rentals to display their products, take advantage of exhibitions, develop business contacts and market their products.
c) Participation in International Exhibitions / Trade Fairs
A large number of exhibitions / trade fairs are organized all over the world. Some of these are organized by the India Trade Promotion Organisation (ITPO), FIEO, MSME, EEPC, EPCH, AEPC etc. VTPC, on behalf of the Govt. of Karnataka takes bulk exhibition space from the organizers in the selected exhibitions and provides the stalls to MSME sector of the State at reduced rentals.
The Market Development Assistance (MDA) scheme is also extended to the MSME sector for their participation in exhibitions and trade fairs upto Rs.1.50 lakh with the following component wise cap: 75% of the economy fare, subject to maximum of Rs.75,000/-. This besides 50% of the stall rentals would be covered subject to a maximum of Rs.50,000/- (for women & SC/ST entrepreneurs 100% of stall rentals shall be reimbursed subject to maximum ceiling of Rs.50,000/-). Additionally, 50% of freight charges subject to a maximum of Rs.10,000/- would be covered. DA of $100 per day for three working days would be permissible.
In the case of South American countries, MDA upto Rs.1.75 lakh would be provided with the following component-wise cap: 75% of the economy air fare subject to a maximum limit of Rs.1 lakh. This besides, 50% of the stall rentals would be covered, subject to a maximum of Rs.50,000/- (for women & SC/ST entrepreneurs 100% of stall rentals shall be reimbursed subject to maximum of Rs.50,000/-, 50% of freight charges subject to a maximum of Rs.10,000/-. This besides DA of $100 per day for three working days would be permissible.