India’s exports are declining, which has spurred the government to ease compliance requirements for current exporters and create incentives for startups and new exporters.
Startups and new exporters are now eligible for airfare reimbursement under the Market Access Initiatives (MAI) Scheme, and the incentive ceiling for current exporters has been increased by 20%.
India’s exports of products decreased by 22% on-year to $32.97 billion in June, the most since the previous three years. The programme offers financial support for initiatives aimed at promoting exports.
New exporters and startups previously weren’t eligible for such incentives, but now those with a domestic market turnover of at least Rs 50 lakh would be supported.
When exporters host overseas customers during reverse buyer-seller meetings in India, the advantages of greater flight reimbursements would also be applicable to them.
“Incentives are important as mega trade fairs are being thought of and there is a need to scale up our exhibitions and invite foreign companies to exhibit here,” a representative said.
To attain a 12% increase in good exports by 2030, India aims to hold massive trade fairs for food, textiles, and automotive components, similar to 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 the exports field in particular as we are looking towards a $1 trillion exports by 2030.”
Activities sponsored by the federal government, individual states, export development councils, commodities boards, and others are used to get benefits under the MAI scheme.
