Competition Studies Scheme for MSMEs targets products that are facing threats from foreign products. Thus, this specifically aids them to promote their product through marketing. Further, assists them to create a brand of their own. Accordingly, this is achieved by conducting a detailed study of the market. Additionally, this studies in turn helps to attain funds to market the products locally.
MSME’s Hurdles that can be Overcome by Competition Studies Scheme
More than 40 Million industries in India are MSMEs. Accordingly, they manufacture and provide quality products and services at low prices locally. However, the majority of buyers neither purchase nor have access to these products and services. Due to a variety of reasons like competitive foreign brands, no marketing, etc. Consequently, the trust factor they have on foreign branded products plays a significant role in the downfall.
Regardless of the great quality, the MSME provide products for low price. Yet, customers tend to purchase foreign goods with lesser quality and higher costs. This not only leads to the decline of many MSMEs but also the decline of our Indian economy due to foreign influx.
Competition Studies helps surpass the major threat that halts MSME growth.
Objectives of Competition Studies Scheme for MSMEs
- The key goal is to promote and protect locally made products from the threat of competition.
- Focus and target on products that are under the threat by competition from international products due to marketing and branding schemes.
- Subsequently, after identification, carry out further analysis.
- Following analysis, identify the reasons for threat and how it affects the production.
- After that, initiate counter measures to overcome this competition.
- Assist up to Rs 8 lakhs for such studies.
Salient Features of the Competition Studies Scheme
- Bearing in mind the perspectives of World Trade Organization (WTO), Free Trade Agreements (FTAs), etc, the competent agencies study on the threatened products
- Further, the Study helps outlines the reasons for the domination of foreign products over local production.
- Additionally, they formulate new marketing measures for better acceptability of local products in the global market
- The Government of India provides 80% of assistance up to a maximum of 8 lakhs per study. Meanwhile, the rest 20% is borne by the beneficiary unit itself.
Targets of the Competition Studies Scheme
The scheme targets products that cannot survive in the local market. Mainly, due to the invasion of international products. Thus, competent units with the same intentions of understanding the root cause of the problem can apply under this scheme. Also. to conduct a successful study of the market and thereby, have their product flourish in international as well as the local market.
Financial Assistance Available Under the Competition Studies Scheme
Eligible products get assistance so that competent agencies can carry out a study on the same. Accordingly, the government assists up to a maximum of Rs 8 lakh per study. Consequently, the government covers 80% of the total cost, while 20% to be covered by the respective unit.
The Government of India provides these funds in 3 installments
- Following the approval of the proposal, The GoI releases 25% (along with receipt of a contribution from the private unit).
- 35% of the sanctioned amount will be released on acceptance of draft report (on ensuring proportionate private contribution).
- Finally, the release of the remaining 40% is on acceptance of the final report by the competent authority (on the complete contribution from the private unit).
Any MSME product of Indian origin that cannot survive in the market can apply. Further, extra priority if their shrinkage is due to the domination of foreign origin products can apply for the competition study scheme.
Agencies Aiding the Structure of the Scheme
The MSME-Development Institutes, Industrial Associations, Technical Institutes, and NGOs will receive the proposals. Following that, the Screening-cum-Steering Committee (SSC) with the help of DC-MSME identify and approve MSME clusters/sectors. Subsequently, these approved clusters/sectors are assisted for the conduction of competition study. Usually by competent organizations such as CII, FICCI, IIMs, and other institutes. Further, the selection of agencies for conducting the study will be by calling open Expression of Interest (EoI) duly abiding the guidelines of the Department of Expenditure.
How to apply
Eligible candidates can either apply via online or an offline method:
- Apply online on the official website, LINK HERE
- Also, apply offline by contacting the nearest MSME-DI office.