Market Access Initiative - Government of India Foreign Trade Incentive

1. Market Access Initiative
KUNAL SURVE
KRITIKA JINDAL
MANAS RANJAN TRIPATHY
MANAN SETH

2. 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

3. 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

4. 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)

5. 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

6. 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

7. 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

8. Approved Purposes and Levels of
Assistance
Purpose 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)

9. Approved Purposes and Levels of
Assistance
Purpose 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% - -

10. 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

11. Documentation Needed
Application Form: Annexure I
Quarterly Review: Annexure II