India’s exports are declining, which has prompted the government to ease compliance norms for existing exporters while introducing 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 existing exporters has been increased by 20%.
India’s goods exports shrank the most in three years, at 22% on-year, in June to $32.97 billion. Under the scheme, financial assistance is provided for export promotion activities.
New exporters and startups did not previously receive these incentives, but now those with an annual domestic market turnover of Rs. 50 lakh will be given some assistance.
When exporters host foreign buyers in reverse buyer-seller meets in India, they will also benefit from higher airfare reimbursements.
“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,” said an official.
To achieve a 12% growth in good exports by 2030, India plans to host massive trade fairs for food, textiles, and auto components, similar to Messe Frankfurt, Gulf Food, and Canton Fair.
“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 trillion exports by 2030,” said Ajay Sahai, director general, Federation of Indian Export Organisations (FIEO).
Benefits under the MAI scheme are availed through activities organized by the government, states, export promotion councils and commodity boards.