Complete introduction and analysis of the Market Access Initiative (MAI) Scheme of India.

Here is a complete introduction and analysis of the Market Access Initiative (MAI) Scheme of India, and its role in the growth of exports of goods from India. I have structured this under key headings: what the scheme is, its key features & eligibility, how it operates, and then a critical analysis of its role (with strengths and limitations) in boosting India’s merchandise exports.

1. Introduction & background

• The MAI Scheme was formulated by the Department of Commerce (DoC), under the Ministry of Commerce & Industry, Government of India to act as a “catalyst” for promoting India’s exports on a sustained basis.
• It is based on what is often described as the “Focus Product – Focus Market” approach: i.e., identifying particular products (or product groups) and particular target markets (countries/regions) for concerted export promotion.
• Over time the scheme has been revised multiple times (for example in 2007, in 2014) and the current iteration (valid from 01 April 2021 to 31 March 2026) emphasises acclimatising to post-COVID-19 export realities.
• The scheme is part of the broader export-promotion architecture of India (alongside schemes like MDA – Market Development Assistance, RoDTEP, etc.).

Thus, the MAI Scheme is a targeted export-promotion programme designed to assist export promotion organisations (EPOs), trade promotion organisations (TPOs), industry associations, and sometimes individual exporters in building up export markets for Indian goods (and services) by providing financial support for a range of activities.

2. Key features / Scope / Eligibility

Here are the major features of the scheme, who is eligible, what activities are supported, etc.

Scope & activities supported

Under the scheme, the following (non-exhaustive) set of activities are eligible for financial assistance:

• Marketing projects abroad: e.g., setting up showrooms/warehouses overseas, display in international departmental stores, publicity campaigns/brand promotion abroad.
• Market studies / surveys: research on markets, product development, potential for exports in focus product–focus country combinations.
• Participation in trade fairs / exhibitions / buyer–seller meets abroad, reverse buyer–seller meets in India, hosting foreign buyers.
• Capacity building: support for training, design centres, clusters, artisan units, etc. — especially for MSMEs, handicrafts, cottage industries.
• Statutory compliance: e.g., testing, certifications required for exports, meeting SPS (sanitary & phytosanitary) / product registration requirements in importing countries.
• Support for web/portal development for foreign trade facilitation.

Eligible agencies / beneficiaries

The scheme is open to a wide array of organisations including:

• Departments of Central Government and organisations of Central/State Governments.
• Export Promotion Councils (EPCs), Trade Promotion Organisations (TPOs), Commodity Boards, recognized industrial/artisan clusters, apex trade bodies.
• Individual exporters (though more restrictedly: e.g., for statutory compliance/testing charges) in some cases.

Focus & priority

• As noted, the scheme emphasises focus product – focus market approach: i.e., specific product groups being pushed into specific overseas markets (or increasing share in existing markets) rather than blanket support.
• Additionally, recent revisions emphasize assisting new exporters, start-ups, and exploring new markets (rather than only existing large exporters/markets). For example, the reimbursement of airfare for new exporters / startups has been raised.

Time-frame & validity

• While the scheme was launched earlier (in 2003) and revised multiple times, the current guidelines are valid from 01 April 2021 to 31 March 2026. (ayushexcil.in)
• Application, sanctioning and monitoring provisions apply as per operational guidelines.

3. Operation / Implementation – How it works

Here is a simplified description of how agencies make use of the MAI scheme and how it translates into export-promotion activity.

1. Identification of focus product and target market: Export Promotion Councils, or recognised trade bodies, in consultation with the Department of Commerce/State Governments, identify product categories (e.g., handicrafts, textiles, engineering goods) and overseas markets (e.g., ASEAN, CIS, Latin America) where Indian exports have potential.
2. Project proposal / sanctioning: The eligible agency submits a project proposal for financial assistance under MAI – for example participation in an international trade fair, organising a buyer–seller meet, setting up a showroom overseas, conducting a market survey, etc. The proposal lays out scope of activity, costs, expected outcomes (in terms of market access or export growth).
3. Cost sharing / financial assistance: The scheme provides reimbursement or assistance for eligible expenses. For example, airfare reimbursement for delegates, cost of translation,/catalogues for promotion, coverage of participation fees in trade fairs, etc. Typically, the assistance is a share (percentage) of eligible cost (e.g., 60% in some cases) depending on guidelines.
4. Implementation of activity: The supported agency carries out the planned activity (e.g., participates in a fair, invites foreign buyers, sets up overseas branding etc.), incurring eligible expenses.
5. Monitoring & outcome-measurement: Post activity, the agency furnishes claim documents, monitors results (e.g., new export orders, new buyers, increased market share). The Department of Commerce may monitor via the Empowered Committee or nodal divisions.
6. Focus on new exporters / newer markets: Recent guidelines emphasise including new exporters/start-ups and markets where Indian presence is less strong. Certain ceilings (turnover thresholds) have been lowered to encourage smaller exporters.

4. Role of MAI in Growth of Export of Goods from India – Analysis

Here we analyse how MAI contributes to export growth, and also the strengths/weaknesses in its contribution.

a) How MAI contributes positively to export growth

1. Encouraging entry into new markets
   • By providing financial support for market surveys, trade-fair participation, buyer–seller meets abroad, the scheme reduces the cost and risk of entering new overseas markets. This is particularly beneficial for MSMEs and smaller exporters who may otherwise be constrained.
   • Example: The scheme reimburses part of translation cost, catalogue cost, airfare for delegates – thereby lowering the incremental cost of export promotion abroad.
   • This helps diversify India’s export basket and destination markets, reducing dependence on a few traditional geographies/products.
2. Increasing share in existing markets
   • For established exporters or export promotion bodies, the scheme enables deeper penetration by branding, promotional campaigns, reverse buyer-seller meets, warehousing/showroom abroad, etc.
   • This can help Indian goods gain visibility overseas, build “Made in India” branding, and thus improve competitiveness.
3. Support for compliance, quality, capacity building
   • Export growth depends not just on producing goods but meeting global standards (e.g., SPS standards, product registration). The MAI scheme supports compliance and statutory requirements which exporters might otherwise find costly.
   • It also supports capacity building/training, design centres, artisan clusters – which help improvement in product quality or value addition, thereby possibly improving export competitiveness.
4. Catalytic (not just fiscal) support
   • Unlike direct export subsidies or duty drawbacks, MAI is more about supporting marketing/market access rather than just cost-reduction. This can help sustainable export growth: brand building, establishing networks, building long-term presence overseas.
   • Thus it aligns with the broader aim of shifting India’s exports up the value chain (rather than just volume).
5. Promoting inclusive export growth
   • By including smaller exporters, handicraft/cottage units, new exporters, the scheme helps India’s export growth be more inclusive (beyond large players). This can help spread export-benefits geographically and across sectors.

b) Some evidence / link to export growth

• The scheme is repeatedly cited in government/expert reviews of India’s export promotion architecture. For example: “The MAI scheme … is an important scheme for boosting Indian exports … launched in 2003 and extended in 2021 to 2026.”
• While direct quantification (i.e., how many additional $ of exports resulted purely because of MAI) may be harder to isolate, the existence of such support lowers barriers to market entry/expansion and complements other export support mechanisms.

c) Limitations / Challenges

While MAI has many positives, there are also constraints and caveats:

1. Limited coverage / scale relative to overall exports
   • India’s goods exports are in hundreds of billions of dollars; a scheme like MAI – which supports marketing/market access – is necessarily limited in scale per beneficiary and may not address bigger structural issues (like manufacturing competitiveness, logistics, trade infrastructure).
   • Thus MAI alone cannot drive export growth – it must work in combination with manufacturing, supply-chain, infrastructure, trade facilitation reforms.
2. Focus on product-market pairs but may face global headwinds
   • While the focus approach is good, in practice global trade is subject to shocks (tariff barriers, supply chain disruptions, geopolitical risks). Support for marketing may not overcome large global demand or regulatory shifts.
3. Need for measurable outcomes & monitoring
   • For such promotional schemes to be effective, there has to be strong monitoring: did participation in a fair lead to new orders, new buyers, sustained exports? If the link between support and outcome is weak, then funds may not yield major export growth. Some critiques in export-policy literature highlight the need for stronger evaluation.
   • Also, the time-lag between marketing support and export realisation can be significant.
4. Complementarity with other export ecosystem factors
   • Market access/promotion is one side; exporters also need competitive cost structures, quality compliance, logistics, efficient customs, trade agreements, financing. If those other factors are weak, then marketing support alone may not convert into large export growth.
   • For example, issues like non-tariff barriers, product certification in destination country, currency fluctuations, require beyond just financial support for fairs/surveys.
5. Awareness and uptake among smaller exporters
   • Often smaller exporters may not have the awareness, capacity or institutional linkages to apply for and utilise such schemes. Ensuring wide dissemination, simpler application processes, and quicker disbursement is important for impact.
   • Also, while the scheme supports many agencies (EPCs, TPOs) rather than each individual exporter, there might be a gap in reaching very small/traditional artisans or micro-exporters.

d) Role in the context of India’s export growth agenda

Given India’s ambition (e.g., increasing goods exports, diversifying destination markets, promoting MSME exports, moving up value-chains), the MAI scheme plays the following strategic roles:

• Supporting diversification of markets: India increasingly wants to move beyond traditional export destinations (US/EU) and target Africa, Latin America, CIS, ASEAN. By supporting market research/trade fairs in such regions, MAI aids diversification.
• Promoting higher-value products/branding: Rather than just volume, Indian export strategy wants to highlight value-addition, branding (“Indian brand”), geographical-indication products, handicrafts, and so on. MAI’s support for brand promotion, showrooms abroad etc helps this.
• Skill-and-capacity building for MSMEs: MSMEs are crucial to India’s export growth ambitions; MAI provides capacity-building support that can help smaller exporters to meet global standards and expand overseas.
• Complement to trade infrastructure and facilitation: While other schemes (e.g. TIES – Trade Infrastructure for Export Scheme) build physical trade infrastructure, MAI emphasises outreach, promotion and access. Together they contribute to the export growth ecosystem.

Thus, MAI is an important tool in India’s export policy toolkit.

5. Conclusion & Recommendations

In conclusion, the Market Access Initiative (MAI) Scheme is a thoughtfully designed export-promotion instrument which addresses a somewhat under-emphasised dimension of export growth — namely market access, overseas presence, branding, buyer-networking, and new market entry. It complements supply-side measures (manufacturing competitiveness, logistics, etc.) and is vital especially for MSMEs, new exporters and non-traditional markets.

Recommendations / ways to strengthen its role:

• Increase outreach so that more small/new exporters become aware of and avail the scheme.
• Strengthen monitoring & impact-evaluation: track and publish how many new buyer relationships/orders were realised, export increases per supported project.
• Ensure faster disbursement and simpler claim mechanisms so that small entities are not deterred.
• Integrate MAI support with other schemes: for example, linking marketing support with manufacturing upgradation or logistics support, so that the supply side can match the demand side.
• Focus even more on higher value-added products and branding (“India as a quality supplier”), and support exporters in meeting regulatory/non-tariff barrier challenges in target markets.
• Encourage clusters, cooperatives, artisan groups to adopt the scheme, especially for GI-tagged products or indigenous handicrafts, thereby promoting inclusive export growth.