Introduction: Unlocking Global Opportunities for Indian MSMEs

The International Cooperation (IC) Scheme, a flagship initiative by the Ministry of MSME, Government of India, is specifically designed to propel Micro, Small, and Medium Enterprises (MSMEs) onto the global stage. This powerful scheme addresses the common challenges faced by businesses aiming for international expansion, offering comprehensive reimbursement for key export-related expenses, fostering vital market knowledge, and building robust export-ready capacities.

For MSMEs across India, including those in regions like Arunachal Pradesh, the IC Scheme serves as a crucial catalyst. It facilitates access to new international customers, helps forge valuable global business networks, and supports sustainable growth by significantly easing financial barriers associated with overseas ventures.

📅 Table of Contents

• What is the IC Scheme? Your Global Trade Facilitator
• Objectives & Who It’s For: Building Export Prowess
• Key Sub-Components: MDA & CBFTE Explained
• Financial Support Breakdown: Maximising Your Reimbursements
• Eligibility Criteria: Are You Ready to Go Global?
• Step-by-Step Application Process: Your Guide to Availing Benefits
• Common Mistakes to Avoid: Ensuring a Smooth Application
• Frequently Asked Questions (FAQs)
• How Sigma Solutions Helps: Your Expert Partner for Global Expansion
• Conclusion: Charting Your Course for International Success

1. What Is the IC Scheme? Your Global Trade Facilitator

The International Cooperation (IC) Scheme acts as a vital bridge for Indian MSMEs and their promoting industry associations. It empowers them to actively participate in crucial international trade events, including:

• International Exhibitions: Showcasing products and services to global audiences.
• Buyer-Seller Meets: Direct interactions for forging trade relationships.
• Conferences: Gaining insights into global market trends and technologies.

These events can be held both abroad and within India (with international participation). The scheme provides essential reimbursement for key expenses, making global participation financially viable. Furthermore, it incorporates sub-components specifically designed to enhance the capacity and readiness of new exporters.

2. Objectives & Who It’s For: Building Export Prowess

The core objectives of the IC Scheme are multifaceted, aiming to create a thriving ecosystem for MSME exports:

• Enhance Global Reach & Competitiveness: Equip MSMEs to compete effectively in international markets.
• Support Export Exploration: Facilitate their exploration of new markets and adoption of advanced technologies.
• Build Export-Readiness: Develop a strong export-oriented mindset and capability across various sectors.

Who Can Apply: The scheme primarily supports organisations dedicated to MSME promotion:

• Central and State Government organisations.
• Industry associations, registered societies, or trusts actively promoting MSMEs.
• Important Note: Applicant bodies must have been operational for at least 3 years and possess regularly audited financial statements for the preceding three years.

3. Key Sub-Components: MDA & CBFTE Explained

The IC Scheme operates through well-defined sub-components designed to cater to different aspects of export promotion:

• Market Development Assistance (MDA):
  • This component provides crucial support for participation in international trade events.
  • It covers both physical and virtual exhibitions, trade fairs, and buyer-seller meets, ensuring adaptability in today’s dynamic global landscape.
• Capacity Building of First-Time MSE Exporters (CBFTE):
  • Tailored specifically for new Micro & Small Enterprise (MSE) exporters, this component offers targeted financial assistance on a reimbursement basis for essential initial expenses:
    • 75% reimbursement of RCMC (Registration-cum-Membership Certificate) / EPC (Export Promotion Council) membership fees, capped at ₹20,000.
    • 75% reimbursement of testing and quality certification costs, up to a maximum of ₹1 lakh (for three tests).
    • Export insurance (ECGC) premium reimbursement, up to ₹10,000.
• Note: Sub-component III, focusing on International Market Intelligence Dissemination (IMID), is currently under planning and will be operationalised soon to provide valuable export-related data and insights.

4. Financial Support Breakdown: Maximising Your Reimbursements

The IC Scheme offers generous reimbursement limits per MSME unit for various approved expenses:

Limits are subject to actual expenditure and scheme guidelines.

5. Eligibility Criteria: Are You Ready to Go Global?

To ensure your organisation qualifies for the IC Scheme, consider these key eligibility points:

• Legal Registration & Activity: The applicant organisation must be legally registered under the relevant Act (e.g., Companies Act, Societies Act) and actively operational for at least 3 years with the primary objective of promoting MSMEs.
• Audited Accounts: Maintain audited financial accounts for the last 3 years.
• Approved Events: The international event for which financial support is sought must be on the Ministry of MSME’s pre-approved list for the current financial year.
• Event Frequency: Typically, financial assistance is restricted to up to 3 events per financial year per applicant organisation. Exceptions may be considered by the Screening Committee based on valid justification.

6. Step-by-Step Application Process: Your Guide to Availing Benefits

Applying for the International Cooperation Scheme involves a clear, streamlined process:

1. Register on the Official Portal: Begin by registering your organisation on the dedicated IC Scheme portal. Individual MSMEs connect through registered organisations/associations.
2. Submit Proposal: Prepare and submit a detailed proposal online, including event specifics and a comprehensive budget estimation.
3. Screening Committee Review: Your proposal will undergo thorough screening by a central or state committee designated by the Ministry of MSME.
4. Attend Approved Event: Once your application is approved, participate in the international event as sanctioned.
5. Submit Claim with Proofs: After the event, submit your reimbursement claim along with all original supporting documents. This includes air tickets, stall rent invoices, freight bills, other relevant invoices, and bank statements. A CA-certified form is often required.
6. Receive Disbursement: Following verification of your claim, the approved reimbursement amount will be disbursed directly to your organisation’s bank account.

7. Common Mistakes to Avoid: Ensuring a Smooth Application

To ensure a successful application and reimbursement process, be mindful of these common pitfalls:

• Exceeding Event Limit: Claiming for more than 3 events per financial year without prior special approval.
• Missing Documentation: Submitting applications without valid registration proofs or the mandatory 3 years of audited accounts.
• Unapproved Events: Participating in events not listed on the Ministry of MSME’s pre-approved list. Always verify the event’s eligibility.
• Illegible or Incomplete Documents: Providing unclear or incomplete travel and freight documents, invoices, or proofs of payment.
• Double Dipping: Attempting to claim the same expenses from other government ministries or schemes is strictly prohibited.

8. Frequently Asked Questions (FAQs)

Q1. Can individual MSMEs apply directly?
No. Only registered organisations or associations that promote MSMEs can apply under this scheme. Individual MSMEs should coordinate with such eligible organisations.

Q2. Is export insurance part of the financial support?
Yes, under the CBFTE sub-component, reimbursement for export insurance (ECGC) premium is available up to ₹10,000.

Q3. What if airfare costs exceed ₹1.5 lakh?
The reimbursement for airfare is capped at ₹1.5 lakh per MSME unit; any excess cost must be borne by the applicant.

Q4. Can virtual events be supported by the scheme?
Yes, virtual exhibitions, fairs, and buyer-seller meets are eligible for support under the Market Development Assistance (MDA) component.

Q5. Do I get a full subsidy for testing and certification?
No, it’s a reimbursement of 75% of the costs for up to three tests, with a maximum cap of ₹1 lakh.

Q6. Are domestic international conferences supported?
Yes, international conferences or summits held in India with confirmed international participation, relevant to MSMEs, are supported.

Q7. Who is involved in the application screening process?
All proposals are reviewed and screened by a designated MSME Screening Committee.

Q8. What specific documents are needed for claim submission?
Key documents include event registration proofs, original boarding passes (or airline certificates), invoices for stalls/freight, bank statements showing payments, and a CA-certified claim form.

Q9. Can an organisation attend more than 3 events in a year?
Potentially, yes. This is subject to the Screening Committee’s approval and requires a strong justification for exceeding the usual limit.

Q10. Is prior event approval mandatory for reimbursement?
Yes, it is crucial. Only participation in events that have been pre-approved by the Ministry of MSME will qualify for reimbursement.

9. How Sigma Solutions Helps: Your Expert Partner for Global Expansion

Navigating the intricacies of the International Cooperation (IC) Scheme can be complex. Sigma Solutions provides comprehensive, end-to-end support to organisations and MSMEs, ensuring a smooth and successful journey towards global market expansion.

Our expert services include:

✅ Proposal Preparation: Meticulously preparing compelling proposals and accurate cost estimates.
✅ Online Application Assistance: Guiding you through the entire online IC portal application process.
✅ Liaison with Authorities: Effectively communicating and liaising with MSME officials and screening committees.
✅ Documentation & Compliance: Ensuring all documentation is complete, accurate, and compliant for seamless reimbursement.
✅ Trade Fair Logistics Support: Providing valuable support for trade fair logistics and ensuring all compliance requirements are met.

📞 Call us today: +91-9084729472 📧 Email us: [email protected] 🌐 Visit our website: www.sigmasolutions.in

Conclusion: Charting Your Course for International Success

The International Cooperation Scheme 2025 stands as a testament to the Ministry of MSME’s commitment to fostering a globally competitive Indian MSME sector. By alleviating significant financial and logistical barriers, it empowers businesses to explore new markets, forge international partnerships, and bring their innovative products and services to the world.

Whether it’s supporting air travel, covering stall charges, assisting with freight, or facilitating essential certifications, the IC Scheme makes international expansion more accessible and achievable.

Don’t let the complexities of global trade deter your ambitions. Partner with Sigma Solutions to expertly navigate every step, from initial proposal submission to successful reimbursement, and make your global leap easier and more impactful.