'Changes in MDA scheme will benefit MSME exporters'

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SME Times News Bureau | 25 May, 2013
The government's decision to double the upper eligibility limit from Rs.15 crore to Rs.30 crore under the Market Development Assistance(MDA) scheme would benefit the micro, small and medium enterprise (MSME) exporters, said the Federation of Indian Export Organisations (FIEO) on Friday.

Doubling in the threshold limit from Rs.15 crore to Rs.30 crore would benefit large number of MSME exporters who were earlier denied the benefit due to lower threshold limit, said FIEO president M Rafeeque Ahmed in a press statement.

Complimenting Commerce Ministry for suitable enhancement in the eligibility in the threshold limit as well as the maximum ceiling under the MDA Scheme from 1st of June, 2013, he said that the same is in line with the request put by the Federation in its pre-policy discussion with Commerce and Industry minister Anand Sharma

He sad that the enhancement 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/- for other countries is a welcome move which to large extent would offset the cost of participation.

Reimbursement to the EPCs have also been suitably enhanced and higher ceiling of Rs.40,00,000/- for International Exhibitions in excess of 75 members would encourage these organizations to provide exposure to Indian exporters on a large basis.

Mr Ahmed said that the budget for MDA Scheme should also be suitably enhanced so that the benefit of these changes actually flow to the exporters.

Marketing Development Assistance (MDA) Scheme is under operation through the Department of Commerce to assist exporters for export promotion activities abroad.

The Commerce and Industry Ministry announced revision of the guidelines of the scheme on Friday in a official press statement.

"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 Commerce Ministry release said.