Government Unveils Rs 4,531-Crore Market Access Initiative to Boost Exporters
The Indian government has unveiled a significant initiative aimed at bolstering the country’s export sector. The newly launched Market Access Support (MAS) scheme, with a budget of Rs 4,531 crore, is designed to assist Indian exporters in participating in international fairs, exhibitions, and buyer-seller meetings. This initiative comes at a crucial time when Indian shipments are facing challenges due to high tariffs imposed by the United States. The MAS is the first component of a broader Rs 25,060-crore export promotion mission, which aims to enhance the competitiveness of Indian exporters.
Details of the Market Access Support Scheme
The MAS scheme will be operational from 2025 to 2031, with an initial allocation of Rs 500 crore for the fiscal year 2025-26. This allocation is particularly significant as it includes Rs 330 crore earmarked to settle outstanding dues from the previous Market Access Initiative (MAI) scheme. The MAS will provide structured financial and institutional support for various export-related activities, including Buyer-Seller Meets (BSMs), international trade fairs, and Mega Reverse Buyer-Seller Meets (RBSMs) held in India. The government will cover 60% of the costs for each approved event, while the remaining 40% will be the responsibility of the private sector. For priority sectors, government support can increase to 80%.
Support for Micro, Small, and Medium Enterprises
A notable aspect of the MAS scheme is its focus on supporting micro, small, and medium enterprises (MSMEs). The government has reserved 35% of participation slots in BSMs and trade delegations specifically for these smaller businesses. Priority sectors identified under the MAS include agriculture, handicrafts, leather, sports goods, telecom, and several others. This targeted approach aims to ensure that MSMEs can access international markets and compete effectively on a global scale.
Future Developments and Feedback Mechanisms
The Director General of Foreign Trade, Ajay Badhoo, announced that a new component will soon be introduced to facilitate proofs-of-concept and product demonstrations for potential overseas buyers, particularly in technology-intensive sectors. This initiative responds to requests from the ministries of telecom, IT, and electronics. Additionally, the MAS will implement mandatory online feedback mechanisms for exporters participating in supported events. This feedback will cover various parameters, including buyer quality and business leads generated, allowing for continuous improvement of the scheme based on real-world experiences.
Broader Export Promotion Mission
The MAS is part of a larger export promotion mission approved by the Cabinet in November, which consists of two main components: Niryat Protsahan and Niryat Disha. The total outlay for this mission is Rs 25,060 crore, with Rs 10,401 crore allocated for Niryat Protsahan, which focuses on reducing credit costs for exporters. This includes measures such as interest subvention for MSME exporters and collateral guarantees. Recent data indicates a rebound in India’s exports, which rose by 19.37% to $38.13 billion in November, helping to narrow the trade deficit significantly.
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