Marketing is pivotal to the growth and sustainability of an MSME. It enables these businesses to thrive in competitive markets. However, MSMEs face significant challenges, including: Limited access to accurate and timely information, Resource constraints, such as financial and operational limitations and Unorganized and ineffective marketing practices.
These barriers prevent MSMEs from exploring new markets and maintaining their presence in existing ones. Recognizing this, the Ministry of MSME introduced the Procurement and Marketing Support (PMS) Scheme in 2019 to provide targeted solutions.
The PMS Scheme aims to:
- Expand MSME market reach into untapped customer bases.
- Strengthen MSMEs’ foothold in existing markets for sustained growth.
- Address resource limitations through financial and logistical support.
This initiative is inclusive, supporting both manufacturing and service enterprises, with special provisions for women-led businesses, SC/ST entrepreneurs, and enterprises in remote areas. It offers financial assistance for participation in trade fairs, exhibitions, and virtual events, covering expenses such as space rent, travel, and promotions. By addressing key marketing challenges, the PMS Scheme empowers MSMEs to remain competitive and dynamic.
Aims and Objectives
The PMS Scheme equips MSMEs with the tools and knowledge needed to succeed in competitive markets. Its core objectives include:
1. Educating MSMEs
- Raising awareness about the Public Procurement Policy under the MSEs Order of 2012.
- Promoting modern packaging techniques to improve product appeal.
- Highlighting the benefits of e-commerce to encourage the adoption of digital selling.
2. Expanding Market Access
- Facilitating MSME participation in national and international trade fairs, exhibitions, and expos.
- Organizing events like the MSME Expo to showcase products and services.
- Enabling access to government procurement opportunities via platforms like the Government e-Marketplace (GeM).
3. Promoting Advanced Business Practices
- Introducing businesses to competitive packaging technologies.
- Providing insights on export policies and international trade procedures.
4. Encouraging General Awareness
- Keeping MSMEs informed about national and international market trends.
- Hosting events like the MSME Conclave to discuss best practices and innovations.
- Conducting training sessions on barcoding, marketing strategies, and trade techniques.
These objectives collectively aim to eliminate barriers and unlock growth opportunities for MSMEs.
Eligibility Criteria
To be eligible for the Procurement and Marketing Support (PMS) Scheme, businesses must have a valid and active Udyam Registration (UR) Certificate, which is essential for MSMEs to access government benefits. The scheme is open to both manufacturing and service enterprises, covering a wide range of industries. Eligible businesses must fall under the Micro or Small Enterprise category as per MSME guidelines. Additionally, the scheme prioritizes inclusivity by offering special consideration to SC/ST entrepreneurs, women-led businesses, enterprises in the North Eastern Region (NER), businesses in aspirational districts, and entrepreneurs with disabilities.
This approach ensures that MSMEs from diverse backgrounds and regions receive the necessary support to grow and access new markets. By encouraging wider participation, the PMS Scheme helps small businesses overcome market challenges, expand their reach, and contribute to economic development.
Udyam registration has seen significant growth, rising from 1.31 crore as of December 31, 2022, to 2.19 crore by the end of 2023, with 88.89 lakh new registrations in that period. The MSME sector, comprising over 6.3 crore enterprises, continues to be a crucial driver of India’s economy.
The Public Procurement Policy for MSEs mandates that 25% of annual procurement by Central Ministries, Departments, and CPSEs must come from MSEs. This includes 4% from SC/ST-owned enterprises and 3% from women-led businesses. Additionally, 358 items are exclusively reserved for procurement from MSEs.
Scheme Components
1. Market Access Initiatives
The Procurement and Marketing Support (PMS) Scheme is crucial in helping MSMEs expand their market presence through various initiatives. It provides financial assistance for participation in trade fairs, exhibitions, and other promotional events, covering expenses such as space rental, travel, and marketing. The scheme also supports MSMEs in adopting modern packaging techniques, e-commerce, and digital marketing to enhance their competitiveness. Additionally, it offers training programs to educate businesses on public procurement policies and export opportunities.
By bridging market access gaps, the PMS Scheme helps small enterprises showcase their products, connect with buyers, and grow sustainably.
2. Domestic and International Trade Fairs
The Ministry or the Office of the Development Commissioner (MSME) organizes trade fairs or facilitates MSME participation. An Empowered Committee governs decisions and expenses for these events.
3. Virtual Trade Fairs
The PMS Scheme supports MSMEs by enabling them to participate in virtual trade fairs, allowing them to showcase their products online and reach global markets. It offers financial assistance of up to ₹16.45 lakh, covering platform costs, training, and advertising expenses. To qualify, organizers must have at least three years of experience, host 100+ exhibitors, and attract 1,000+ buyers. Platforms should be accessible 24/7, with 8-12 interactive hours daily.
By embracing digital platforms, the scheme helps MSMEs overcome geographic barriers, expand their reach, and stay competitive in the evolving market.
Summary
The Procurement and Marketing Support (PMS) Scheme strengthens MSME market access by supporting participation in trade fairs and exhibitions. In 2023, the Ministry of MSME participated in 253 trade fairs/exhibitions, benefiting around 9,500 MSEs by helping them showcase their products, expand market reach, and enhance competitiveness.
This scheme is a powerful initiative aimed at strengthening MSMEs and driving economic growth. By addressing key challenges in marketing and market access, the scheme empowers small businesses to expand, compete, and thrive. It plays a crucial role in boosting entrepreneurship, creating jobs, and enhancing the country’s overall economic development. With better opportunities and support, MSMEs can contribute significantly to India’s GDP and long-term progress.
In Part 2, we will explore how this scheme provides financial support, drives business expansion, and accelerates MSME growth for a stronger economy.
