The primary goal of the Market Access Initiative Scheme is to promote India’s exports by providing financial assistance to exporters and industry associations. By facilitating market access and addressing barriers, the scheme aims to enhance the global competitiveness of Indian products and services. Export promotion Scheme is envisaged to act as a catalyst to promote India’s exports on a sustained basis. Assistance would be provided to export Promotion Organizations/Trade Promotion Organizations/ Exporters etc., for enhancement of exports through accessing new markets or through increasing the share in the existing markets.
These endeavours will encompass aiding micro, small, and medium enterprises in venturing into the export market, fostering innovation, enhancing trade and market intelligence, cultivating relevant skill sets, and addressing necessary interventions for exploring new international markets.
Administering Authority:
The Ministry of Commerce and Industry, Government of India, oversees the implementation of the MAI Scheme. The Directorate General of Foreign Trade (DGFT) is responsible for formulating policies and guidelines for its effective execution.
Key Components:
The scheme encompasses various components, including:
- Market Studies: Funding for conducting market research studies to identify potential export markets and understand trade dynamics.
- Marketing Development Assistance (MDA): Financial support for exporters participating in trade fairs, exhibitions, and buyer-seller meets abroad to promote their products.
- Export Promotion Events: Assistance for organizing seminars, workshops, and conferences to create awareness about export opportunities and address challenges faced by exporters.
Eligibility Criteria:
To avail benefits under the MAI Scheme, exporters, export promotion councils, industry associations, and other recognized bodies are eligible to apply. The specific eligibility criteria may vary based on the component for which assistance is sought.
The following activities will be eligible for financial assistance under the Scheme:
- Marketing Projects Abroad
- Capacity Building
- Support for Statutory Compliances
- Studies
- Project Development
- Developing Foreign Trade Facilitation web Portal
- To support Cottage and handicraft units
Eligible Agencies:
The program is available for the following organizations and agencies:
- Departments of Central Government
- Organisation of Central/State Governments
- Indian Missions abroad
- Export Promotion Councils
- Registered Trade Promotion Organisation
- Commodity Boards
- Apex Trade Bodies recognized under Foreign Trade Policy of Govt of India
- Recognized Industrial & Artisan Clusters
- Individual Exporters (only for statutory compliance etc.)
- National Level Institutions (e.g. Indian Institutes of Technology (IITs), Indian Institutes of Management (IIMs), National Institute of Design (NIDs), NIFT etc.)/ Research Institutions/Universities/ Recognized laboratories, etc.
Scheme Validity:
MAI is valid from 01.04.2021 to 31.03.2026
Financial Assistance:
The scheme provides financial assistance in the form of grants or reimbursements for eligible expenses. The quantum of assistance is determined based on the nature of the activity and the category of the applicant.
For this objective, a suggestive list of activities eligible for support under the Scheme is provided as follows:
i. Enhancing exporters’ capabilities in Standards and Regulations, Export Packaging, Export-oriented Skill Development, and Training
ii. Conducting Marketing, Branding, Publicity Campaigns, and Cataloguing
iii. Advocating for traditional Indian products and services such as AYUSH, Yoga, Geographical Indication (GI) products, crafts, artisanal products (including toys), tribal products, etc.
iv. Promoting e-Business Tools, Communication Technology, and developing Web Portals to facilitate trade and meet standards
v. Conducting Export Market Research and supporting Product Development
vi. Organizing or participating in Fairs, Exhibitions, and Buyer-Seller Meets Abroad (Physical/Virtual/Hybrid)
vii. Arranging Reverse Buyer-Seller Meets – RBSM [Made in India Shows] – (Physical/Virtual/Hybrid)
viii. Conducting RBSM Specials and Shopping Festivals, facilitating visits to centers of production/excellence
ix. Displaying artisanal, GI, and other traditional Indian products at International Departmental Stores/shopping areas, International Airports, etc.
x. Reimbursing exporters for expenses related to statutory compliances
xi. Building capacity, providing training, and addressing all incidental matters related to the development of districts as export hubs
xii. Considering any other components deemed appropriate within the framework of the Scheme, to be determined by the Empowered Committee.
Review, Physical Verification of Projects and Monitoring & Evaluation:
The Empowered Committee (E.C.) will oversee project implementation, providing guidance for optimal resource utilization through monitoring and evaluation (M&E). M&E will be conducted in collaboration with reputable institutions like IIFT, NCAER, ICRIER, IIMS, IITs, etc. The EC will issue instructions/guidelines for Scheme administration, periodically reviewing implementation to ensure timely achievement of objectives.
The Committee may authorize external agencies for annual physical project verification to uphold financial discipline principles.
Eligible agencies must submit prescribed reports and information as required.
Funding and level of Assistance:
Support under the scheme for Export Promotion Councils (EPCs) and trade bodies will operate on a cost-sharing basis. The maximum funding will be 65% of the actual cost, with priority sectors eligible for higher support at 90% of the actual cost.
Release of Assistance:
Grant-in-aid is disbursed in two installments. The first installment, amounting to 50% of the approved sum, is provided upfront. The release of the second installment is contingent upon the timely submission, within 60 days of the event/activity’s completion, of outcome reports, utilization certificates (UC), and Chartered Account (CA) certified audit statements, which should include details such as funding sources.
Application Process:
Interested parties must submit their proposals to the concerned nodal agencies as per the guidelines provided by the DGFT. The application should include details such as the proposed activity, estimated budget, and expected outcomes. To seek assistance under the Scheme, the eligible agency must submit comprehensive proposals, adhering to the prescribed formats, to the E&MDA Division. These proposals should be forwarded through the relevant Commodity/Territorial Division/Line Ministries. This requirement is applicable to all proposals, including those related to Market & Research Studies.
Evaluation and Approval
Audit:
Payments disbursed to the agency under the Scheme are subject to inspection by the sanctioning authority and audits conducted by both the Comptroller and Auditor General of India and the internal audit performed by the Principal Accounts Office of the Department of Commerce, Ministry of Commerce & Industry. Additionally, other audit methods deemed appropriate by the Government of India may be employed.
Physical Verification:
The Government of India will conduct physical verification and other necessary inquiries as considered suitable for the projects approved under the Scheme.
Exemption from Investigation:
Any organization, exporter, trader, or company benefiting from the Scheme’s provisions must not be under investigation, charged, prosecuted, debarred, or blacklisted under the Foreign Trade Policy of India or any other laws related to export and import business.
Proposals undergo a thorough evaluation by the relevant authorities to ensure alignment with the scheme’s objectives. Approved proposals receive financial assistance as per the sanctioned amount.
Monitoring and Reporting:
Beneficiaries are required to submit periodic reports on the progress and outcomes of the approved activities. This monitoring ensures transparency and accountability in the utilization of funds.
Benefits of the Market Access Initiative Scheme:
Global Market Exposure:
- The scheme provides a platform for Indian exporters to showcase their products and services on the international stage, fostering global exposure.
Financial Support:
- Financial assistance eases the burden on exporters, making it more feasible for them to explore and enter new markets.
Market Intelligence:
- Market studies funded under the scheme equip exporters with valuable insights into global market trends, consumer behaviour, and competitive landscapes.
Capacity Building:
- Participation in export promotion events and seminars contributes to the skill development and capacity building of exporters, enhancing their competitiveness.
Conclusion:
The Market Access Initiative Scheme stands as a beacon for Indian exporters, offering a pathway to overcome challenges and tap into new horizons. By providing financial support and facilitating strategic initiatives, the scheme plays a pivotal role in promoting a culture of export-led growth. As businesses navigate the complexities of international trade, the MAI Scheme emerges as a valuable ally, unlocking doors to diverse markets and opportunities. Embracing this initiative is not just a strategic move for individual enterprises but a collective step towards strengthening India’s position in the global marketplace.