Centre to offer Export incentives to Startups

NEW DELHI: The Centre has introduced export incentives for startups and new exporters, while also reducingcomplianceforexistingexporters.Themove comes as India’s goods exports fell by 13% year-onyearinJune2023.

Under the Market Access Initiatives (MAI) Scheme, startups and new exporters are now eligible for airfare reimbursement to participate in overseas events. At the same time, the ceiling for this incentive for existing exporters has been raised by 20%. Under the scheme, the government provides financial support for export promotion activities.

According to the Ministry of Commerce and Industry,MarketAccessInitiative(MAI)Schemeisan export promotion scheme “envisaged to act as a catalyst to promote India’s exports on a sustained basis.”

With the move, startups with an annual turnover of INR50Lakhinthedomesticmarketwillbeeligiblefor export support. Such startups and exporters will also get the benefits of higher airfare reimbursements when they host foreign buyers in reverse buyer-seller meetsinIndia.

The incentives are important as mega trade fairs are being thought of and there is a need to scale up exhibitions and invite foreign companies to exhibit in India.Thecountryroutinelyplansmegatradefairsfor food, textiles and auto components, on the lines of MesseFrankfurt,GulfFoodandCantonFair.

Ajay Sahai, Director-General of the Federation of Indian Export Organisations (FIEO), said, “The coverage of new entrepreneurs with nil exports for airfare support under the scheme is well conceived and pragmatic to encourage startups to enter into the exports field particularly as we are looking towards a $1Tnexportsby2030.”

According to the Commerce Ministry’s latest figures, India’s overall exports (merchandise and services combined) in June 2023 were estimated to be $60.09 Bn, falling 13.16% compared to $69.20 Bn in June2022.