SME Times News Bureau | 24 May, 2013
The government has
revised guidelines of the Market Development Assistance scheme as a
result of which bigger exporters will now be eligible for applying for the
As per the revised guidelines exporting companies with an
f.o.b. value of exports of upto Rs. 30 crore in the preceding year will be
eligible for MDA assistance. Earlier this limit was 15 crore.
"In a major push to market development in Latin America,
Government has removed the upper ceiling of 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 Ministry of Commerce and Industry said in a
press statement on Thursday.
It added that the revised guidelines for MDA have also
doubled upper eligibility limit for other regions also.
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 exceeds 75, Export Promotions Councils will be
eligible for a higher financial support to the tune of Rs. 40 lakh. Revised
guidelines should motivate exporters in their market development efforts," the
"It was felt that penetration in LAC region, 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 crore can aggressively venture LAC region after this relaxation," it added.Marketing Development
Assistance (MDA) Scheme is under operation through the Department of Commerce
to assist exporters for export promotion activities abroad.