With the move, startups with an annual turnover of INR 50 Lakh in the domestic market will be eligible for export support
Such startups and exporters will also get the benefits of higher airfare reimbursements when they host foreign buyers in reverse buyer-seller meets in India
India’s overall exports (merchandise and services combined) in June 2023 were estimated to be $60.09 Bn, falling 13.16% compared to June 2022
The Centre has introduced export incentives for startups and new exporters, while also reducing compliance for existing exporters. The move comes as India’s goods exports fell by 13% year-on-year in June 2023.
Under the Market Access Initiatives (MAI) Scheme, startups and new exporters are now eligible for airfare reimbursement to participate in overseas events. At the same time, the ceiling for this incentive for existing exporters has been raised by 20%. Under the scheme, the government provides financial support for export promotion activities.
According to the Ministry of Commerce and Industry, Market Access Initiative (MAI) Scheme is an export promotion scheme “envisaged to act as a catalyst to promote India’s exports on a sustained basis.”
With the move, startups with an annual turnover of INR 50 Lakh in the domestic market will be eligible for export support. Such startups and exporters will also get the benefits of higher airfare reimbursements when they host foreign buyers in reverse buyer-seller meets in India.
Per an official cited by the ET, incentives are important as mega trade fairs are being thought of and there is a need to scale up exhibitions and invite foreign companies to exhibit in India. The country routinely plans mega trade fairs for food, textiles and auto components, on the lines of Messe Frankfurt, Gulf Food and Canton Fair.
Ajay Sahai, director-general of the Federation of Indian Export Organisations (FIEO), said, “The coverage of new entrepreneurs with nil exports for airfare support under the scheme is well conceived and pragmatic to encourage startups to enter into the exports field particularly as we are looking towards a $1 Tn exports by 2030.”
According to the commerce ministry’s latest figures, India’s overall exports (merchandise and services combined) in June 2023 were estimated to be $60.09 Bn, falling 13.16% compared to $69.20 Bn in June 2022.
While merchandise exports fell from $42.28 Bn in June 2022 to $32.97 Bn in June 2023, services exports increased slightly from $26.92 Bn last June to $27.12 Bn this June.
The export incentives from the government will prompt more Indian startups to look for expansion in markets abroad, especially those producing tangible goods. For instance, D2C startups, drone manufacturers and electric vehicle makers can start looking at potential markets outside India.
