Govt Plans Subsidy For Export-Oriented Items.

JAIPUR: To promote micro, small and medium enterprises (MSME) of the state in international markets, state government has decided to provide subsidy on the ground rent paid for participation in international trade fairs and exhibitions.

Items like gems & jewellery, handicraft, handloom and mineral-based industries, which are mostly export-oriented, abound in Rajasthan. To enable these industries to showcase their products in international markets, government has decided to give a subsidy of 30 % on the rent paid for a space of 9 sq metre (i.e., to Rs 75,000 per event).

Any medium or small enterprises registered in the state with a minimum turnover of Rs 5 lakh per annum is eligible for availing the subisidy. But there is a restriction cap, too, allowing one unit to claim subsidy only for three events in a year, subject to a maximum of Rs 2,25,000 in a financial year.

asItas a very unique step taken by the state government and will boost the exports here. This will primarily benefit small exporters and encourage them to participate in the global events. It is an opportunity for us to make our presence felt on the world map,a? an industry insider said.

But the business community is not aware of the scheme. asSuch subsidies are merely eyewash. Government wants to give the industries international exposure but has paid no heed to the production cost at home. No product can stand in international market if it is costlier than a similar product from some other country. It will be more useful if government also provides subsidy on production cost,a? T C Chaudhary, president of United Council of Rajasthan Industries (UCRI) consortium of all industries, including MSME, said.

Nitin Gupta, state head of Confederation of Indian Industry, sees it as a step in right a direction, asItas a welcome step and will give the small-time exporters a new growth avenue.a? He expressed the same opinion as the industrialists and said, asit is true that to be internationally competitive we have to be cost-effective and many products like handicrafts, bearings and ceramics from Rajasthan are doing well and if some initiative of the state can lessen the input cost, it will only make things bettera?.

This subsidy, however, is only applicable for the foreign exhibitions/fairs organised by institutions such as Export Promotion Council, Indian Trade Promotion Organisation, Export Commodity Board, Federation of Indian Export Organisation or any other organisation specified in the Foreign Trade Policy of India. A committee has been set up headed by the general manager of district industries to scrutinise and sanction subsidies and to oversee effective implementation of the scheme.

Source : timesofindia.indiatimes.com