In response to a 13% year-on-year decline in India’s goods exports in June 2023, the Centre has introduced export incentives to support startups and new exporters while reducing compliance for existing exporters. The initiative aims to bolster the country’s exports and provide financial assistance for export promotion activities.
Market Access Initiatives (MAI) Scheme for Startups and New Exporters
Under the Market Access Initiatives (MAI) Scheme, startups and new exporters are now eligible for airfare reimbursement to participate in overseas events. Additionally, the ceiling for this incentive has been raised by 20% for existing exporters. This measure encourages and supports startups with an annual turnover of INR 50 Lakh in the domestic market to venture into international trade.
Boosting Reverse Buyer-Seller Meets and Mega Trade Fairs
Startups and exporters will also receive higher airfare reimbursements when they host foreign buyers in reverse buyer-seller meets held in India. The incentives are particularly important as the country plans to hold mega trade fairs for various industries, such as food, textiles, and auto components. These initiatives aim to attract foreign companies to exhibit in India, thereby fostering international trade partnerships.
Positive Response from Export Associations
Ajay Sahai, director-general of the Federation of Indian Export Organisations (FIEO), welcomed the coverage of new entrepreneurs with nil exports for airfare support, viewing it as a pragmatic measure to encourage startups to enter the export field. The move aligns with India’s ambitious goal of achieving $1 trillion in exports by 2030.
Export Incentives to Drive Expansion in Foreign Markets
In June 2023, India estimated its overall exports, including merchandise and services, at $60.09 billion, marking a 13.16% decrease compared to the same period in the previous year. With the government’s export incentives in place, more Indian startups, especially those dealing with tangible goods like D2C startups, drone manufacturers, and electric vehicle makers, are likely to explore expansion opportunities in foreign markets, seeking to capitalize on the incentives and expand their global presence.
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