Gujarat-based micro, small, and medium enterprises (MSMEs) that actively participate in exhibitions across the country are encountering obstacles in obtaining subsidies from the government’s market development assistance (MDA) policy. The district industries centres (DICs), responsible for processing MSME applications, frequently fall short of disbursing the requested subsidies.
Recognizing the severity of the issue, the Gujarat Chamber of Commerce and Industry (GCCI) has taken it upon themselves to raise the matter with the state government. In a recently addressed letter to the industries department, the GCCI emphasized the necessity of timely assistance for MSMEs. A senior member of the GCCI expressed concerns by stating, “Our member units have reported shortcomings in subsidy allocations for exhibitions under the MDA policy. This disparity in grant amounts has persisted for the past two years, causing distress among both MSMEs and DICs.”
Reports reveal that during the October-December 2022 quarter, various DICs submitted subsidy requests totalling Rs 11.31 crore. However, only Rs 4.37 crore was granted, leaving a significant funding gap. As a consequence, DICs have become increasingly hesitant to process claims, creating a growing backlog.
Gujarat’s thriving industries, including chemicals, textiles, plastics, and engineering sectors, partake in numerous national and international exhibitions and secure substantial orders. Consequently, stakeholders within the industry are urging a comprehensive review of the subsidy-allocation process under the MDA policy to address these persisting challenges.
