Government notifies first set of export promotion mission scheme

[ad_1] New Delhi: India on Wednesday launched the Market Access Support (MAS) intervention with an outlay of Rs 4,531 crore for six years aimed at easing trade finance constraints, expanding global reach and supporting micro, small and medium enterprises (MSME), amid the country facing steep 50% tariffs by the US.The country is also working on creating an index to evaluate exporters performance based on their Importer Exporter Codes (IECs), tracking performance over a five-year period as the government sharpens its focus on data-driven export promotion and market diversification.The MAS, which is part of the Rs 25,060 crore six-year export promotion mission (EPM), will be focussed on MSMEs, first-time exporters and firms from priority sectors and would provide financial support to participate in activities such as international fairs and exhibitions. It aims to improve buyer connect and enhance India’s presence in global markets through structured and outcome-oriented market access interventions.“The scheme will have a MSME-bias because we also want diversification in terms of products, markets and beneficiaries,” said Ajay Bhadoo, Director General of Foreign Trade.Live EventsThe arrears due to exporters under the older Market Access Initiative of approximately Rs 330 crore will also be cleared.Exporters entering new markets or products will receive a tailor made intervention.Bhadoo said that a sub-component called Trace will partially reimburse the cost of compliances such as tests, certifications and litigative costs.“The product passport... depends and changes shape as per the markets. This Trace will help the product fully comply with that product passport,” he said, citing requirements such as REACH or eco-tax compliance in specific destinations.He said the government plans to issue guidelines for all 11 components of the mission by January 31.On trade frictions, Bhadoo said some policy measures should not be seen as direct responses to external actions.“The EPM interventions are not in response to the US tariffs per se. We’re not trying to address tariffs through the EPM. We aim to resolve long-term disabilities,” he added.While the idea of monitoring of the scheme compliance is not hard linkage, he said there will be consequences for the IEC holders on case of compliance gaps.Scheme detailsThe total budgetary outlay is about 14,000 crore rupees, with flexibility to reallocate funds based on uptake.“There is fungibility. We’re in a sandbox mode because we don’t know how things like factoring will pick up,” he added.Cost-sharing is set at 60% government and 40% private, rising to 80% government support for priority sectors with higher MSME participation. Firms can receive support for up to three buyer-seller meets per year, while MSMEs are eligible for four.A forward-looking three-to-five-year calendar of major market access events will be prepared and approved in advance, enabling exporters and organising agencies to plan participation well ahead of time and ensuring continuity of market development efforts.“A minimum participation of 35% MSMEs has been mandated for supported events, with special prioritisation being accorded to new geographies and smaller markets to encourage export diversification. Delegation size has been benchmarked at a minimum of 50 participants, with flexibility provided based on market conditions and strategic relevance,” Bhadoo said.Event-level financial support ceilings and cost-sharing ratios have been rationalised, with preferential support being extended to priority sectors and markets.Small exporters with export turnover of up to Rs 75 lakh in the preceding year will be provided partial airfare support to encourage participation by new and small exporters, according to the details.End-to-end processes for event listing, proposal submission, approvals, participant onboarding, fund release and monitoring will be enabled through a portal ensuring transparency and ease of access for all stakeholders. [ad_2] Source link Follow Us: https://facebook.com/gagab2b https://youtube.com/gagab2b https://gagab2b.com https://gagab2b.com/import-export-news/import-export-india-news/government-notifies-first-set-of-export-promotion-mission-scheme/?feed_id=3959&_unique_id=696c5b3aecb0f

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