Market Access Initiative

Market Access Initiative - Government of India Foreign Trade Incentive

1. Market Access Initiative Kunal Surve Kritika Jindal Manas Ranjan Tripathy Manan Seth

2. Introduction Started during 10 th Five Year Plan It is an Export Promotion Scheme started to promote India's exports on a sustained basis The scheme is based on focus product- focus country approach to generate specific strategy for specific market and specific product through market studies/survey Assistance would be provide to Export Promotion Organizations/ Trade Promotion Organizations / Exporters etc. for enhancement of export through accessing new markets or through increasing the share in the existing markets Under the Scheme the level of assistance for each eligible activity has been fixed

3. Scope of Scheme To identify the priorities of research relevant to the Department of Commerce and to sponsor research studies consistent with the priorities WTO Studies for evolving WTO compatible strategy To support EPCs/Trade Promotion Organizations in undertaking market studies/survey for evolving proper strategies To support marketing projects abroad based on focus product - focus country approach . Under marketing projects, the following activities will be funded: Opening of Showrooms, Warehouses Display in international departmental stores Publicity Campaign and Brand Promotion Participation in Trade Fairs, etc., abroad Research and Product Development Reverse visits of the prominent buyers etc. from the project focus countries Capacity Building Export Potential Survey of the States; To support Recognized associations in industrial clusters for marketing abroad

4. Eligible Agencies Departments of Central Government and organization of Central / State Governments Export Promotion Councils Registered Trade Promotion Organizations Commodity Boards Apex Trade Bodies recognized under EXIM-Policy of Government of India Recognized Industrial clusters Individual exporters ( only for testing charges of engineering products abroad and registration charges of pharmaceuticals, bio-technology and agro-chemicals)

5. Criteria for Sanction Eligible Agencies should formulate a project for m arket access on the basis of Focus Country- Focus Product approach for a period of 2-3 years The proposal should not duplicate the efforts of any existing activity or organization in the same field Projects assisted under MDA (Market Development Assistance) will not be assisted under MAI The funding for the project will be on cost-sharing basis. However, the Empowered Committee may consider for enhancement or curtailment of the level of assistance on the merit of the project

6. Scrutiny and Sanctions Empowered Committee (E.C .) will consider and approve proposals and will also monitor the implementation of the sanctioned proposals The representative of the Eligible Agencies proposing/sponsoring the proposals may be invited to the meeting of the Empowered Committee, if required. E&MDA Division, Deptt . of Commerce, will co-ordinate the work related to the Scheme and liaise with Eligible Agencies for release and utilisation of the sanctioned funds . Payment made under the Scheme will be subject to audit by the Comptroller and Auditor General of India

7. Approved Purposes and Levels of Assistance (Revised) Purpose Assistance under Scheme Exceptions Ceiling ( Rs ) Publication of World Class Catalogues 50% of Total Cost Updation after 3 yrs possible 10 Lakh/ Market p.a. Opening Showrooms and Warehouses 75%- 1 st Year 50%- 2 nd Year 33% - 3 rd Year 500 Lakh for Multi Product Showrooms 100 Lakh for each Market/ Product Display in International Departmental Stores 50% Rental Charges - 100 Lakh p.a. / Product Publicity Campaign 50% for 2yrs 90% (Priority Sectors) Review for 3 rd yr 100 Lakh p.a. / Product 200 Lakh ( PrioritySector ) Trade Fairs and Exhibition Participation 65% of Actual Expenditure 90% on Approval of EC 500 Lakh/ Fair

8. Approved Purposes and Levels of Assistance Purpose Assistance under Scheme Ceiling ( Rs ) Reverse Visit of Prominent Foreign Buyers and Journalists 65% of Approved Expenditure & 100% Travel, Hotel 75000 for Travel and Hotel 100000 (American) Research and Product Development 65% of Approved Cost 100 Lakh/ Product Assistance to Industrial/ Artisan Clusters 75% of Approved Cost 100 Lakh Purpose Assistance under Normal Course For Handicrafts and Cottage Remarks Assistance to Priority Sectors 50% & Above Below 50% 90% 75% Ceiling as per Normal Course 75% for Virtual Exhibition (Website)

9. Approved Purposes and Levels of Assistance Purpose Assistance under Scheme Exceptions Ceiling ( Rs ) Market Study 75% of Total Cost 100% DoC Studies 100 Lakh/Study Export Potential Survey of States 65% - 100 Lakh Other Scheme Related Studies 65% - 50 Lakh WTO related Studies 100% - - Monitoring and Evaluation on Use of Resources 100% - -

10. Approved Purposes and Levels of Assistance Purpose Assistance Ceiling Assistance for imparting training to the Indian Exporters 66% of Total Cost 90% to Develop Study Material 10 Lakh 25 Lakh Facility Up-gradation 75% of Total Cost 50 Lakh/ Organization Skill Improvement for Quality 66% of Total Expenditure 25 Lakh/ Organization p.a. Product Development 65 % 50 lakh / Center Max 10 lakh for hiring experts Hiring Consultants in Buyer Country 65% of Charges with 2 reimbursements per year 5 lakh p.a. /Exporter

11. Documentation Needed Application Form: Annexure I Quarterly Review: Annexure II