The government has revised guidelines of theMarket Development Assistance scheme as a result of which bigger exporters will now be eligible for applying for the scheme.
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 release said.
"It was felt that penetration in LAC region, key region for Governmentâ€™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.