Market Access Initiative

KUNAL SURVE

KRITIKA JINDAL

MANAS RANJAN TRIPATHY

MANAN SETH

Introduction

Started during 10th Five Year Plan

It is an Export Promotion Scheme started to promote India's exports

on a sustained basis

The scheme is based on focus product- focus country approach to

generate specific strategy for specific market and specific product

through market studies/survey

Assistance would be provide to Export Promotion Organizations/

Trade Promotion Organizations / Exporters etc. for enhancement of

export through accessing new markets or through increasing the

share in the existing markets

Under the Scheme the level of assistance for each eligible activity

has been fixed

Scope of Scheme To identify the priorities of research relevant to the Department of Commerce and to

sponsor research studies consistent with the priorities

WTO Studies for evolving WTO compatible strategy

To support EPCs/Trade Promotion Organizations in undertaking market studies/survey for evolving proper strategies

To support marketing projects abroad based on focus product - focus country approach. Under marketing projects, the following activities will be funded:

Opening of Showrooms, Warehouses

Display in international departmental stores

Publicity Campaign and Brand Promotion

Participation in Trade Fairs, etc., abroad

Research and Product Development

Reverse visits of the prominent buyers etc. from the project focus countries

Capacity Building

Export Potential Survey of the States;

To support Recognized associations in industrial clusters for marketing abroad

Eligible Agencies

Departments of Central Government and organization of Central /

State Governments

Export Promotion Councils

Registered Trade Promotion Organizations

Commodity Boards

Apex Trade Bodies recognized under EXIM-Policy of Government of

India

Recognized Industrial clusters

Individual exporters ( only for testing charges of engineering

products abroad and registration charges of pharmaceuticals, bio-technology and agro-chemicals)

Criteria for Sanction

Eligible Agencies should formulate a project for market access on the basis of Focus Country- Focus Product approach for a period of

2-3 years

The proposal should not duplicate the efforts of any existing activity

or organization in the same field

Projects assisted under MDA (Market Development Assistance) will

not be assisted under MAI

The funding for the project will be on cost-sharing basis. However,

the Empowered Committee may consider for enhancement or

curtailment of the level of assistance on the merit of the project

Scrutiny and Sanctions

Empowered Committee (E.C.) will consider and approve proposals

and will also monitor the implementation of the sanctioned

proposals

The representative of the Eligible Agencies proposing/sponsoring the

proposals may be invited to the meeting of the Empowered

Committee, if required.

E&MDA Division, Deptt. of Commerce, will co-ordinate the work

related to the Scheme and liaise with Eligible Agencies for release and utilisation of the sanctioned funds.

Payment made under the Scheme will be subject to audit by the

Comptroller and Auditor General of India

Approved Purposes and Levels of

Assistance (Revised)Purpose Assistance under

Scheme

Exceptions Ceiling (Rs)

Publication of World

Class Catalogues

50% of Total Cost Updation after 3

yrs possible

10 Lakh/

Market p.a.

Opening Showrooms

and Warehouses

75%- 1st Year

50%- 2nd Year

33% - 3rd Year

500 Lakh for Multi

Product

Showrooms

100 Lakh for

each Market/

Product

Display in International

Departmental Stores

50% Rental

Charges

- 100 Lakh p.a.

/ Product

Publicity Campaign 50% for 2yrs

90% (Priority

Sectors)

Review for 3rd yr 100 Lakh p.a.

/ Product

200 Lakh

(PrioritySector)

Trade Fairs and

Exhibition Participation

65% of Actual

Expenditure

90% on Approval

of EC

500 Lakh/ Fair

Approved Purposes and Levels of

AssistancePurpose Assistance under

Scheme

Ceiling (Rs)

Reverse Visit of Prominent

Foreign Buyers and Journalists

65% of Approved

Expenditure & 100%

Travel, Hotel

75000 for Travel and

Hotel

100000 (American)

Research and Product

Development

65% of Approved Cost 100 Lakh/ Product

Assistance to Industrial/ Artisan

Clusters

75% of Approved Cost 100 Lakh

Purpose Assistance under

Normal Course

For Handicrafts

and Cottage

Remarks

Assistance to

Priority Sectors

50% & Above

Below 50%

90%

75%

Ceiling as per

Normal Course

75% for Virtual Exhibition (Website)

Approved Purposes and Levels of

AssistancePurpose Assistance under

Scheme

Exceptions Ceiling (Rs)

Market Study 75% of Total Cost 100% DoC Studies 100 Lakh/Study

Export Potential Survey

of States

65% - 100 Lakh

Other Scheme Related

Studies

65% - 50 Lakh

WTO related Studies 100% - -

Monitoring and

Evaluation on Use of

Resources

100% - -

Approved Purposes and Levels of

Assistance

Purpose Assistance Ceiling

Assistance for imparting

training to the Indian

Exporters

66% of Total Cost

90% to Develop Study

Material

10 Lakh

25 Lakh

Facility Up-gradation 75% of Total Cost 50 Lakh/ Organization

Skill Improvement for

Quality

66% of Total Expenditure 25 Lakh/ Organization p.a.

Product Development 65% 50 lakh/ Center

Max 10 lakh for hiring

experts

Hiring Consultants in Buyer

Country

65% of Charges with 2

reimbursements per year

5 lakh p.a. /Exporter

Documentation Needed

Application Form: Annexure I

Quarterly Review: Annexure II