Table of Contents
International Cooperation IC Scheme : For Indian MSMEs (2025-26)
Foreword: Your Global Ambition Starts Here
India stands at a pivotal moment in global trade. The clarion call of “Vocal for Local, Go Global” is not just a slogan; it is a national mission. At the heart of this mission are the country’s Micro, Small, and Medium Enterprises (MSMEs)—the silent engines powering our economy. For India to achieve its ambitious goal of becoming a $5 trillion economy and a global export powerhouse, our MSMEs must transcend domestic boundaries and plant their flags on the world stage.
However, the path to international markets is often paved with challenges: a lack of market knowledge, high participation costs for global fairs, complex compliance standards, and the inherent risks of international trade.
This is where the Government of India’s International Cooperation (IC) Scheme emerges as a game-changer. It is more than just a subsidy; it is a meticulously designed support system, a strategic partnership between the government and the entrepreneur. It is a launching pad for your global dreams.
This guide is written for you—the ambitious Indian entrepreneur of 2025-26. Whether you run a small workshop in Moradabad, a tech startup in Hyderabad, or a food processing unit in Punjab, this document will serve as your ultimate resource. We will break down every component of the IC Scheme in simple, actionable terms. We will move beyond jargon and government circulars to give you expert-level insights, practical examples, and a clear roadmap to leverage this powerful scheme. Let’s unlock the world, together.
The Global Landscape in 2025-26: Why Going Global is No Longer an Option, But a Necessity
The world economy in the mid-2020s is a complex tapestry of opportunities and challenges. Global supply chains, once rigid, are now more flexible, with a clear trend of diversification away from single-country dependence. This presents a golden opportunity for Indian MSMEs to position themselves as reliable, high-quality partners in the global value chain.
Key Trends Shaping the 2025-26 Export Market:
- Digital Transformation: Business-to-Business (B2B) commerce is increasingly happening online. Virtual trade fairs, digital marketing, and e-commerce platforms are the new frontiers of export.
- Sustainability and Green Economy: Developed markets, especially in Europe and North America, have a growing consumer and regulatory demand for products that are environmentally friendly, ethically sourced, and have a low carbon footprint (Green Products).
- Focus on Resilience: Global companies are looking for partners who can ensure business continuity. This means Indian MSMEs with robust quality control, transparent processes, and reliable delivery schedules have a distinct advantage.
- New Market Frontiers: While traditional markets like the USA and EU remain crucial, there is immense untapped potential in Latin America, Africa, Southeast Asia, and Eastern Europe.
The Hurdles Indian MSMEs Face:
Despite the opportunities, the path is not without obstacles. For a typical MSME, the primary challenges are:
- Information Asymmetry: Lack of reliable, actionable intelligence about which markets to target, what products are in demand, and what regulatory hurdles exist.
- Prohibitive Costs: The cost of participating in a single international trade fair—including stall rental, travel, accommodation, and freight—can be prohibitive for a small enterprise.
- Quality and Compliance: Meeting stringent international quality standards (like CE, RoHS, etc.) and navigating complex customs procedures requires significant investment and expertise.
- Risk Mitigation: The fear of payment defaults from foreign buyers is a major deterrent for many first-time exporters.
The International Cooperation (IC) Scheme is the government’s strategic and direct answer to each of these challenges. It aims to de-risk the export journey and empower MSMEs to compete on a global scale.
Decoding the International Cooperation (IC) Scheme: Philosophy and Objectives
At its core, the objective of the International Cooperation (IC) Scheme is to build the capacity of Indian MSMEs to enter the export market and succeed. It’s not a handout; it’s a strategic investment in the capabilities of our enterprises.
The Core Philosophy:
The scheme operates on a simple yet powerful philosophy: “Enable, Empower, and Equip.”
- Enable: It enables MSMEs to physically and virtually reach international markets by subsidizing the high costs of participation.
- Empower: It empowers first-time exporters by helping them with the initial costs of compliance, certification, and risk insurance, thereby reducing the entry barrier.
- Equip: It aims to equip MSMEs with the most critical tool for success—market intelligence—so they can make informed, strategic decisions.
The scheme is structured into three distinct sub-components, each addressing a specific need in the export lifecycle.
Sub-Component | Name | Status (as of 2025-26) | Primary Goal |
---|---|---|---|
I | Market Development Assistance (MDA) | Operational | To help MSMEs showcase their products/services in global markets. |
II | Capacity Building of First Time MSE Exporters (CBFTE) | Operational | To help new exporters overcome the initial costs of compliance and risk. |
III | Framework for International Market Intelligence Dissemination (IMID) | In Advanced Implementation | To provide MSMEs with strategic data and insights for export planning. |
Now, let’s dissect each of these components in granular detail.
Deep Dive into Sub-Component I: Market Development Assistance (MDA)
This is the most active and widely used component of the IC Scheme. It directly subsidizes the costs associated with participating in and organizing international business events. The assistance is not provided directly to individual MSMEs but is routed through Eligible Implementing Agencies.
Who are the Eligible Implementing Agencies?
- Ministry of MSME and its organizations (like NSIC, KVIC, Coir Board).
- State and Central Government Organizations/Institutions.
- Registered Industry/Enterprise Associations (e.g., FICCI, CII, FIEO, local chambers of commerce, and product-specific associations).
Expert Tip: As an MSME owner, your first step is to become a member of a reputable industry association. These associations are your gateway to availing the benefits of the IC Scheme. They organize delegations and handle the administrative process on your behalf.
The MDA component covers four main types of activities.
Activity 1: Participation in International Events Abroad (Physical Mode)
This is for MSMEs who want to be part of an Indian delegation attending a trade fair, exhibition, or buyer-seller meet in a foreign country.
Why is this important? There is no substitute for face-to-face interaction. It allows you to:
- Showcase your product’s quality directly.
- Understand customer reactions firsthand.
- Assess your international competitors.
- Build trust and personal relationships with potential buyers.
Financial Assistance Provided (Per MSME Unit):
Expense Category | Maximum Reimbursement | What It Covers |
---|---|---|
Space Rent (Stall) | Up to ₹3.00 Lakh | The cost of renting your exhibition booth/stall at the fair. |
Air Fare | Up to ₹1.50 Lakh | The cost of a round-trip economy class ticket for one representative of the MSME. |
Freight Charges | Up to ₹50,000 (General) Up to ₹75,000 (Latin American Countries) | The cost of shipping your exhibition materials, samples, and products to the event venue and back. The higher limit for LAC is to encourage market exploration in that region. |
Duty Allowance | USD 150 per day (For one Office Bearer of the Implementing Agency) | This is not for the MSME but for the association’s representative to cover incidental expenses while managing the delegation. |
Financial Assistance for the Implementing Agency:
Expense Category | Maximum Reimbursement | What It Covers |
---|---|---|
Advertisement & Publicity | Up to ₹5.00 Lakh | Costs incurred by the association for promoting the Indian pavilion at the event through brochures, digital ads, etc. |
Registration Fee | Up to ₹5,000 | The fee paid by the association to register the delegation with the event organizer. |
Example / Use Case:
- Company: ‘Jaipur Blue Pottery Creations’, an MSME from Jaipur, Rajasthan.
- Implementing Agency: Federation of Indian Export Organisations (FIEO).
- Event: “Ambiente” – a leading international consumer goods fair in Frankfurt, Germany.
- How it works:
- FIEO announces it is leading a delegation to Ambiente and invites applications from its members.
- ‘Jaipur Blue Pottery Creations’ applies and is selected.
- They travel to Frankfurt and exhibit their products.
- The total cost for their stall is ₹3.5 Lakh, airfare is ₹1.2 Lakh, and freight is ₹40,000.
- Through the IC Scheme, FIEO facilitates a reimbursement of ₹3.00 Lakh for the stall, ₹1.2 Lakh for the airfare, and ₹40,000 for freight.
- The MSME effectively participates in a world-class fair by paying only a fraction of the actual cost.
Activity 2: Participation in International Events (Virtual Mode)
The pandemic accelerated the adoption of virtual events, and they remain a cost-effective way to reach global audiences in 2025-26.
Why is this important?
- Cost-Effective: Drastically reduces costs as there is no travel, accommodation, or physical freight involved.
- Wider Reach: Allows you to connect with buyers from multiple countries simultaneously without leaving your office.
- Excellent First Step: Perfect for MSMEs who are new to exporting and want to test international waters before committing to physical fairs.
Financial Assistance Provided:
Expense Category | For the Implementing Agency | For Participating MSMEs (channeled via the agency) |
---|---|---|
Space/Stall Charges (Virtual) | – | Up to ₹1.5 Lakh per MSME. This covers the fee for the virtual booth, digital catalogue listing, and platform access. |
Advertisement & Publicity | Up to ₹5.00 Lakh | This is for the association to promote the virtual Indian pavilion and drive traffic to the MSMEs’ booths. |
Activity 3 & 4: Organizing International Conferences/Summits in India (Physical & Virtual)
This part of the scheme flips the script. Instead of sending MSMEs abroad, it helps bring international expertise, buyers, and knowledge to India. This is done by funding industry associations to organize world-class events domestically.
Why is this important?
- Knowledge Transfer: Allows thousands of MSMEs to learn from global experts on new technologies, market trends, and best practices.
- Showcasing India’s Prowess: Positions India as a hub for business and innovation in specific sectors.
- Buyer-Seller Meets: Facilitates reverse buyer-seller meets, where international buyers are invited to India to meet with a large number of potential suppliers.
Financial Assistance for Organizing Events in India:
Activity Mode | Expense Category | Maximum Reimbursement | Purpose |
---|---|---|---|
Physical | Event Organization Charges | Up to ₹10.00 Lakh | Venue rent, catering, security, local publicity, etc. |
Foreign Speaker Airfare | Up to ₹5.00 Lakh | Economy class travel for bringing international experts to speak at the event. | |
Virtual | Virtual Platform/License Fee | Up to ₹2.00 Lakh | Cost of the webinar/conference software and platform. |
Publicity Cost | Up to ₹5.00 Lakh | Digital marketing and promotion to attract a global audience. | |
Translation & Interpretation | Up to ₹1.00 Lakh | Providing real-time translation for foreign speakers or attendees. |
Activity 5: Mega-Events by the Ministry of MSME
This covers large-scale, prestigious events organized directly by the Ministry of MSME, often in partnership with major industry bodies. These are high-impact events designed for significant policy dialogues, government-to-government (G2G) meetings, and showcasing the best of the Indian MSME sector. The funding for these is determined on a case-by-case basis and is generally much larger.
Component II: Capacity Building of First Time MSE Exporters (CBFTE)
If MDA is about taking you to the market, CBFTE is about getting you “market-ready.” This component is exclusively for Micro and Small Enterprises (MSEs) who are exporting for the first time. It recognizes that the initial journey is the hardest and seeks to soften the financial blow of mandatory start-up costs.
The assistance here is in the form of reimbursement for expenses already incurred by the MSE.
The Three Pillars of CBFTE Support:
- Reimbursement of RCMC Fees:
- What is it? A Registration-cum-Membership Certificate (RCMC) is a mandatory document issued by an Export Promotion Council (EPC) or a commodity board. It validates you as a genuine exporter of specific products/services.
- Why is it needed? It is required to avail benefits under various government schemes and for customs clearance.
- The Support: The CBFTE component reimburses the one-time registration fee paid by the first-time MSE exporter to the relevant EPC.
- Reimbursement of Export Insurance Premium:
- What is it? When you export on credit, there’s a risk the foreign buyer might default on payment. The Export Credit Guarantee Corporation of India Ltd. (ECGC) offers insurance policies to cover this risk.
- Why is it needed? It provides a crucial safety net, giving you the confidence to offer competitive credit terms to buyers.
- The Support: The scheme reimburses the premium paid by the first-time MSE exporter for an ECGC policy. This is a massive confidence booster.
- Reimbursement of Testing & Quality Certification Costs:
- What is it? To sell products in developed markets, you often need to prove they meet specific international standards. This involves getting your products tested by accredited labs and obtaining certifications (e.g., ISO, CE, HACCP, REACH, RoHS).
- Why is it needed? Quality certification is a non-negotiable requirement in many countries and a powerful marketing tool that signals credibility.
- The Support: The scheme reimburses a portion of the cost incurred by the first-time MSE exporter in getting these tests and certifications.
Implementing Agencies for CBFTE: The Ministry has signed MoUs with key organizations to implement this component efficiently. When you pay a fee to one of these bodies, they have a mechanism to process the reimbursement. Key agencies include:
- 18 Export Promotion Councils (EPCs): For RCMC reimbursement.
- Export Credit Guarantee Corporation Ltd (ECGC): For insurance premium reimbursement.
- National Small Industries Corporation Ltd (NSIC): For testing and quality certification reimbursement.
Use Case:
- Company: ‘Kochi Spice Exports’, a new micro-enterprise from Kerala.
- Goal: To export black pepper to the European Union for the first time.
- The Journey & CBFTE Support:
- RCMC: They register with the Spices Board of India (an EPC) and pay a fee of ₹10,000. Under CBFTE, this amount is reimbursed.
- Quality Certification: The EU buyer requires a specific food safety certification. ‘Kochi Spice Exports’ gets their product tested and certified, costing them ₹75,000. A significant portion of this is reimbursed via NSIC.
- Risk Mitigation: The buyer asks for 60-day credit terms. To secure the payment, the company takes an ECGC policy and pays a premium of ₹20,000. This premium is reimbursed.
Thanks to CBFTE, ‘Kochi Spice Exports’ saves over ₹1 Lakh in initial costs, making their first export venture far less daunting and more profitable.
The Future is Here (MSME IC 2025-26)
Component III: Framework for International Market Intelligence Dissemination (IMID)
While MDA and CBFTE provide financial and foundational support, IMID is poised to be the strategic brain of the entire IC Scheme. As of late 2024, this component is in its final stages of development and is expected to be fully operational and a cornerstone of the scheme by 2025-26.
The Problem IMID Solves: The “Where” and “What” of Exporting
Many MSMEs have excellent products but fail because they target the wrong market or are unaware of global trends. IMID is being designed to solve this critical information gap. It will move the government’s role from just a facilitator to a strategic advisor.
What will IMID look like in 2025-26? (Projections & Analysis)
Based on government objectives and technological trends, IMID will likely be a multi-pronged digital platform offering:
- An AI-Powered Market-Finder Tool:
- An MSME can input its product’s HS Code (a global classification code for products).
- The tool will use AI to analyze global trade data, tariff rates, and market trends to suggest the top 5-10 potential export markets for that product.
- It will provide a “Market Potential Score” based on factors like demand, competition, and ease of doing business.
- Dynamic Country & Sector Reports:
- Instead of static, outdated PDFs, IMID will offer living reports.
- Country Profiles: Detailed guides on exporting to specific countries, covering culture, key ports, logistics, regulations, and major importers.
- Sector Profiles: Global trend analysis for specific sectors like textiles, auto components, pharmaceuticals, or IT services. It will highlight emerging opportunities (e.g., the demand for sustainable packaging, or components for electric vehicles).
- Real-Time Lead Generation:
- The platform will aggregate import tenders and buy-requests from around the world.
- MSMEs could receive alerts for potential leads relevant to their product profile, directly on their dashboard or via email.
- Compliance & Non-Tariff Barrier (NTB) Database:
- A simplified, searchable database explaining the various quality standards, certifications, and labeling requirements for different products in different countries.
- This would demystify complex NTBs, which are often a bigger hurdle than tariffs.
- Interactive Webinars with Trade Experts:
- Regularly scheduled live sessions with commercial diplomats in Indian embassies abroad, logistics experts, and successful exporters, providing practical, on-the-ground insights.
IMID will essentially democratize access to high-quality market research, giving a small enterprise in a Tier-3 city the same level of intelligence that was once only available to large corporations.
The Application Process: Your Step-by-Step Digital Guide (2025-26)
The entire application process for the IC Scheme is online, paperless, and transparent. It is managed through a dedicated portal.
Portal Link: http://ic.msme.gov.in
Prerequisite: The Udyam Registration Before you can even think about the IC Scheme, your enterprise must be registered on the Udyam portal and have a valid Udyam Registration Number. This is the foundational identity for any MSME in India.
Here is a clear, step-by-step guide for an MSME owner or the implementing agency.
Step 1: Registration on the IC Portal
- The Implementing Agency (your industry association) registers itself on the portal.
- They create a profile and get their credentials verified by the Ministry.
Step 2: Event Proposal Submission (by the Agency)
- For every event (e.g., a trade fair in Dubai or a conference in Delhi), the agency submits a detailed proposal online.
- This proposal includes the event details, list of interested MSMEs, and a budget breakdown as per the scheme guidelines.
- This must be done well in advance of the event.
Step 3: Sanction by the Ministry
- A committee within the Ministry of MSME reviews the proposal.
- If everything is in order, they issue an “in-principle” approval electronically. The agency and the participating MSMEs can see this status on their dashboard.
Step 4: Participation & Documentation
- The MSME units participate in the event.
- Crucial Part: You must meticulously collect all original proofs of expenditure.
- For MDA: Stall payment receipts, boarding passes, flight tickets, freight invoices.
- For CBFTE: RCMC certificate with payment proof, ECGC policy document, and lab testing invoices.
Step 5: Claim Submission (by the Agency)
- After the event is over, the implementing agency collates all the documents and bills from the participating MSMEs.
- They submit a consolidated financial claim on the portal, uploading scanned copies of all supporting documents.
Step 6: Scrutiny and Reimbursement
- The Ministry scrutinizes the submitted claims.
- Once verified, the approved reimbursement amount is transferred directly to the bank account of the Implementing Agency.
- The agency then disburses the respective amounts to the individual MSME units.
Tips for a Smooth Application:
- Be Proactive: Connect with your industry association early. Keep track of their annual calendar of events.
- Read the Guidelines: Before applying for an event, read the latest version of the IC Scheme guidelines thoroughly.
- Document Everything: Keep a separate, organized file for every claim. Never lose original bills and boarding passes.
- Digital Is Key: Ensure all your documents are clear, legible scans. Poor quality uploads can lead to delays.
- Follow Up: While the system is online, maintain regular communication with your association to track the status of the claim.
Synergy: Multiplying Your Growth by Combining Schemes
The International Cooperation Scheme does not exist in a vacuum. It is one star in a constellation of MSME support schemes. A smart entrepreneur in 2025-26 will leverage these schemes in synergy to maximize their global growth potential.
Your Goal | Primary Scheme (IC) | Complementary Schemes to Combine |
---|---|---|
Participate in a German trade fair. | IC Scheme (MDA) for subsidizing stall and airfare. | MSME Champion Scheme: To improve your product design and manufacturing process before the fair. ZED Certification Scheme: To showcase your “Zero Defect, Zero Effect” quality commitment at your stall. |
Secure your first large export order. | IC Scheme (CBFTE) for reimbursement of insurance and RCMC. | Credit Guarantee Scheme (CGTMSE): To get a collateral-free bank loan to finance the production for this large order. PMS Scheme: To get support in packaging and logistics for the export consignment. |
Upgrade your factory to meet EU standards. | IC Scheme (CBFTE) for reimbursement of certification costs. | Credit Linked Capital Subsidy Scheme (CLCSS): To get a subsidy on the loan taken to purchase the new, technologically advanced machinery required to meet those standards. |
Gather intelligence for a new product line. | IC Scheme (IMID) to identify high-potential markets. | MSME Innovative Scheme: To get funding and incubation support for developing the new, innovative product based on the market intelligence gathered. |
By strategically layering these schemes, you can create a powerful, government-backed support system that addresses almost every aspect of your business—from production and quality to finance, marketing, and risk management.
Looking Ahead: The IC Scheme in 2025-26 and Beyond
The IC Scheme is dynamic and will continue to evolve. Looking towards the near future, we can anticipate several key trends and potential enhancements.
Key Projections:
- Increased Focus on Service Exports: As India’s service sector (IT, wellness, tourism, consulting) continues to boom, the scheme may introduce specific provisions and higher funding limits to promote service exports.
- ESG as a Criterion: In the future, preference might be given to MSMEs that have strong Environmental, Social, and Governance (ESG) credentials or are ZED-certified, aligning with global sustainability demands.
- Geographical Diversification: Expect a greater push, with potentially higher subsidies (like the current one for Latin America), for MSMEs exploring markets in Africa and CIS countries.
- Digital Integration: The IMID portal will likely integrate with other government platforms like the Trade Infrastructure for Export Scheme (TIES) and the portals of various EPCs to create a single-window experience for exporters.
- Enhanced Role of Indian Embassies: Indian embassies and their commercial wings abroad will play a more active role in verifying events, facilitating buyer-seller meets, and providing real-time market feedback into the IMID system.
Conclusion: The World is Waiting | International Cooperation IC Scheme 2025
The International Cooperation (IC) Scheme is one of the most comprehensive and empowering initiatives for Indian MSMEs. It systematically dismantles the traditional barriers to exporting, replacing them with financial support, capacity building, and strategic intelligence.
For the Indian entrepreneur of 2025-26, the message is clear: the government is ready to be your partner in your global journey. The support infrastructure is in place. The funds are allocated. The digital portals are operational.
The only remaining ingredient is your ambition.
Study this guide. Connect with your industry association. Register on the Udyam portal. And take that first confident step towards establishing your own global brand. Your products, your services, and your story deserve to be shared with the world. The world is waiting.
Frequently Asked Questions (FAQ) IC MSME Scheme 2025
Is the IC Scheme only for manufacturers? Can a service-based MSME apply?
Absolutely. The scheme is for both manufacturing and service-sector MSMEs. A software company participating in a tech summit or a wellness brand attending a health expo can avail the benefits, provided they are routed through an eligible implementing agency.
I am a new entrepreneur. Is Udyam Registration really mandatory?
Yes, it is 100% mandatory and non-negotiable. The Udyam Registration Number is the unique identifier for your MSME and is the prerequisite for almost all government schemes, including the IC Scheme.
How many times can my unit avail benefits under the MDA component in a year?
The guidelines specify that an MSME can avail the benefit a limited number of times. This is typically once per financial year to ensure wider distribution of benefits. However, always check the latest guidelines as this can be revised. An entrepreneur representing multiple MSME units can only represent one unit at an event.
My industry association is not very active. Can I apply directly?
No, direct applications from individual MSMEs are not accepted under Sub-Component-I (MDA). The scheme is designed to work through implementing agencies. It is highly recommended to become a member of a proactive national-level or a well-regarded regional industry association.
How long does the reimbursement process take after the claim is submitted?
While the online system has made it faster, the timeline can vary. It depends on the completeness of your documents, the claim volume at the Ministry, and the efficiency of your implementing agency. A realistic timeframe to expect is typically between 3 to 6 months from the date of claim submission by the agency.
What if the actual cost of my airfare or stall is higher than the scheme’s limit?
The scheme provides assistance up to the specified maximum limit. Any cost incurred above this limit must be borne by the MSME unit. For example, if your airfare is ₹1.8 Lakh, you will be reimbursed up to the maximum limit of ₹1.5 Lakh, and you will have to bear the remaining ₹30,000.
Is the CBFTE component (first-time exporter benefits) available to traders as well?
The focus of the scheme is primarily on manufacturing and service-providing MSEs. While traders can be part of MDA delegations, the benefits under CBFTE are generally aimed at enterprises that are manufacturing a product or providing a service, thereby adding value within the country.
Can I get an advance before the event?
The scheme generally operates on a reimbursement basis, meaning you spend first and get the money back later. However, in some cases, the implementing agency might receive a portion of the funds as an advance from the Ministry, which they may or may not pass on to the participating members. Do not assume you will get an advance.
What happens if an event for which approval was granted gets cancelled?
If the event is cancelled and no expenditure has been incurred, the approval becomes void. If non-refundable expenses have been incurred (e.g., stall booking advance), the implementing agency must immediately inform the Ministry with proof, and a decision will be made on a case-by-case basis.
Where can I find the most updated, official guidelines for the IC Scheme 2025-26?
The single source of truth is always the official website of the Ministry of MSME (msme.gov.in) or the dedicated IC Scheme portal (ic.msme.gov.in). Always refer to the latest circulars and guidelines uploaded there.