Source-This post on Market Access Initiative (MAI) scheme has been created based on the article “Interim Budget 2024: Exporters seek higher allocation for MAI scheme” published in “Business Standard” on 29 January 2024.
Why in the news?
Ahead of the interim Budget 2024, exporters have urged the government to allocate funds worth $3.88 billion for the Market Access Initiative (MAI) scheme.
About Market Access Initiative Scheme
| Objective | Market Access Initiative (MAI) Scheme is an Export Promotion Scheme envisaged to act as a catalyst to promote India’s exports on a sustained basis. |
| Strategy | The scheme is formulated on focus product-focus country approach to evolve specific market and specific product through market studies/survey |
| Eligible activities | 1) Marketing Projects Abroad 2) Capacity Building 3) Support for Statutory Compliances 4) Studies 5) Project Development 6) Developing Foreign Trade Facilitation web Portal 7) To support Cottage and handicrafts units |
| Eligible agencies | 1) Departments of Central Government and Organisation of Central/ State Governments including 2) Indian Missions abroad 3) Export Promotion Councils 4) Registered trade promotion Organisation 5) Commodity Boards 6) Apex Trade Bodies recognized under Foreign Trade Policy of Govt of India 7) Recognized Industrial & Artisan Clusters 8) Individual Exporters (only for statutory compliance etc.) 9) National Level Institutions (e.g. Indian Institutes of Technology (IITs), Indian Institutes of Management (IIMs), National Institute of design (NIDs), NIFT etc.)/ Research Institutions/Universities/ Recognized laboratories, etc. |
| Funding | The funding for each project will be on a cost-sharing basis, with the sharing pattern ranging from 65% to 50% at the minimum. |
| Administering body | It is administered by the Ministry of Commerce and Industry, Government of India, through the Directorate General of Foreign Trade (DGFT). |
NOTE-1) India aims to take goods and services export from $776 billion recorded in 2022-23 to $2 trillion by 2030, but the marketing support given under the MAI scheme, with a total allocation of less than Rs 2 billion for the current year, is highly inadequate.
2) There is an uneven contribution by states in India’s export basket. Over 70 per cent of India’s exports are from only five states, and Gujarat alone accounts for over 30 per cent.
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