Startups to get airfare support for export promotion
India's contracting exports have prompted the government to introduce incentives for startups and new exporters, and relax compliance norms for the existing exporters. Under the Market Access Initiatives (MAI) Scheme, startups and new exporters have been made eligible for airfare reimbursement to participate in overseas events while the ceiling for this incentive for existing exporters has been raised 20%.
India's goods exports shrank the most in three years, at 22% on-year, in June to $32.97 billion. Under the scheme, financial assistance is provided for export promotion activities.
Earlier, new exporters and startups didn't get such incentives but now those with Rs 50 lakh annual turnover in the domestic market will get some support. The benefits of higher airfare reimbursements will also apply to the exporters when they host foreign buyers in reverse buyer-seller meets in India.
«Incentives are important as mega trade fairs are being thought of and there is a need to scale up our exhibitions and invite foreign companies to exhibit here,» said an official. India plans mega trade fairs for food, textiles and auto components, on the lines of Messe Frankfurt, Gulf Food and Canton Fair, to achieve 12% growth in good exports by 2030.
«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 exports field particularly as we are looking towards a $1 trillion exports by 2030,» said Ajay Sahai, director general, Federation of Indian Export Organisations (FIEO). Benefits under the MAI scheme are availed through activities organised by the government, states, export promotion councils and commodity boards, among others.
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