In a major push to market development in Latin America, Government has removed the upper ceiling with regard to eligibility for Market Development Assistance (MDA) for participation in Buyer-seller Mission BSMs/fairs/exhibitions abroad to explore new markets in focus countries of Latin America for export of their specific product(s) and commodities from India in the initial phase.
The revised guidelines for MDA have also doubled upper eligibility limit for other regions also. Now exporting companies with an f.o.b. (fresh off the boat) value of exports of upto Rs. 30 crore in the preceding year will be eligible for MDA assistance. Earlier this limit was 15 crore. It was felt that penetration in LAC region, a key region for Government’s market diversification scheme in the wake of slowdown in the traditional markets, is costly. Therefore, the big exporters with more than f.o.b of Rs.30 crores can aggressively venture LAC region after this relaxation.
Government of India has been trying to increase exports by identifying and encouraging new markets. India has traditionally exported mostly to three regions – Europe, the U.S. and the Middle East. Latin America, Eastern Europe etc.. have been identified as new target markets.
The revised guidelines have also substantially enhanced in the financial ceiling for participation in Trade Fairs & Exhibitions from Rs.1,80,000/- to Rs.2,50,000/- for focus Latin American countries, from Rs.1,50,000/- to Rs.2,00,000/- for focus African countries, focus CIS countries, focus ASEAN, Australia and New Zealand and from Rs.80,000/- to Rs.1,50,000/-. This rise is in response to escalation in cost and appreciation of international currency. Furthermore, international exhibitions where the number of participants exceed 75, Export Promotions Councils will be eligible for a higher financial support to the tune of Rs. 40 lakhs. Revised guidelines should motivate exporters in their market development efforts.
Export promotion continues to be a major thrust area for the Government. In view of the prevailing macro economic situation with emphasis on exports and to facilitate various measures being undertaken to stimulate and diversify the country’s export trade, Marketing Development Assistance (MDA) Scheme is under operation through the Department of Commerce to assist exporters for export promotion activities abroad, assist Export Promotion Councils (EPCs) to undertake export promotion activities for their product(s) and commodities, Assist approved organizations/trade bodies in undertaking exclusive nonrecurring innovative activities connected with export promotion efforts for their members and assist Focus export promotion programmes in specific regions abroad like FOCUS (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN + 2) programmes.