The Indian government has launched a significant initiative to enhance the country’s export sector. The newly introduced Market Access Support (MAS) scheme, with a budget of Rs 4,531 crore, aims to assist Indian exporters in participating in international fairs, exhibitions, and buyer-seller meetings. This move comes at a critical time, as Indian shipments are facing challenges due to high tariffs imposed by the United States. The MAS is the first component of a larger Rs 25,060-crore export promotion mission, aimed at boosting the competitiveness of Indian exporters.
Details of the Market Access Support Scheme
The MAS scheme will be operational from 2025 to 2031, beginning with an initial allocation of Rs 500 crore for the fiscal year 2025-26. This allocation is significant as it includes Rs 330 crore designated for settling outstanding dues from the previous Market Access Initiative (MAI) scheme. The MAS will offer 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 borne by the private sector. For priority sectors, government support can increase to 80%.
Support for Micro, Small, and Medium Enterprises
A key feature of the MAS scheme is its focus on supporting micro, small, and medium enterprises (MSMEs). The government has allocated 35% of participation slots in BSMs and trade delegations specifically for these smaller businesses. The identified priority sectors under the MAS include agriculture, handicrafts, leather, sports goods, telecom, and 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
Ajay Badhoo, Director General of Foreign Trade, announced that a new component will soon be introduced to facilitate proofs-of-concept and product demonstrations for overseas buyers, particularly in technology-intensive sectors. This initiative addresses requests from the ministries of telecom, IT, and electronics. Furthermore, the MAS will implement mandatory online feedback mechanisms for exporters participating in supported events. This feedback will evaluate various parameters, including buyer quality and business leads generated, enabling 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, consisting of two primary components: Niryat Protsahan and Niryat Disha. The overall outlay for this mission is Rs 25,060 crore, with Rs 10,401 crore allocated for Niryat Protsahan, focused on reducing credit costs for exporters. This includes measures such as interest subvention for MSME exporters and collateral guarantees. Recent data shows a rebound in India’s exports, which increased by 19.37% to $38.13 billion in November, significantly narrowing the trade deficit.
Digihunt is not a financial advisor and this is not investment advice.