The Market Access Initiatives (MAI) Scheme in India has recently undergone updates to foster international trade and promote exports. One of the significant changes includes providing airfare reimbursement to startups and new exporters participating in overseas events. Existing exporters are also set to benefit from a 20% higher ceiling for this incentive. Despite these positive measures, India’s goods exports experienced a substantial 22% year-on-year contraction in June, raising concerns about the current state of the export sector.
Encouraging Participation in Overseas Events
The updated MAI scheme now allows startups and new exporters to receive airfare reimbursement for participating in international events. This financial assistance is aimed at facilitating export promotion activities for these entities and encouraging them to explore new markets beyond national borders. By supporting their participation in global trade fairs and exhibitions, the government aims to increase the visibility of Indian products and foster networking opportunities with potential international buyers.
Boosting Export Promotion Activities
The MAI scheme’s focus on providing airfare reimbursements is an essential step towards encouraging more Indian entrepreneurs to venture into the export field. By easing the financial burden associated with international travel, the scheme aims to promote a culture of export-oriented businesses and empower startups to become global players. This assistance is expected to nurture a more vibrant and competitive export ecosystem.
Incentives for Hosting Foreign Buyers
The benefits of higher airfare reimbursements will also extend to the exporters who host foreign buyers in reverse buyer-seller meets within India. This provision is significant as it incentivizes Indian exporters to engage in such meetings, facilitating direct interactions with potential buyers. By promoting such interactions, the MAI scheme aims to bolster export opportunities and strengthen business ties between Indian exporters and foreign markets.
Scaling Up Exhibitions and Mega Trade Fairs
Incentives offered under the MAI scheme assume greater importance as India plans to host mega trade fairs for food, textiles, and auto components. The objective is to create platforms similar to internationally renowned events like Messe Frankfurt, Gulf Food, and Canton Fair. Such initiatives are critical to showcase India’s capabilities on a global stage and attract foreign companies to participate in these events. By doing so, India aims to achieve a 12% growth in goods exports by 2030.
Focus on New Entrepreneurs
The MAI scheme’s coverage of new entrepreneurs with nil exports for airfare support is a well-conceived and pragmatic move. This provision is geared towards encouraging startups to venture into the export field. The scheme’s support comes at a crucial time as India aspires to reach $1 trillion in exports by 2030. By nurturing new entrepreneurs and providing them with financial aid, the government aims to build a robust foundation for sustained export growth.
Accessing Benefits under the MAI Scheme
Exporters can access the benefits offered under the MAI scheme through various activities organized by the government, states, export promotion councils, commodity boards, and other relevant entities. The scheme’s multi-faceted approach ensures that exporters from various sectors and regions can avail themselves of its incentives. This inclusivity is vital to foster widespread participation and drive overall export growth.