Source: CNBC TV18
New Delhi, August 30 (PTI): Economic think tank Global Trade Research Initiative (GTRI) has recommended that the government allocate ₹2,500 crore for exporters to participate in international exhibitions under the Market Access Initiative (MAI) scheme.
The group stated that exporters have missed a lot of significant opportunities between April and August this year due to the MAI scheme not having any funds in FY2025, the first instance in decades.
“With a modest budget of only ₹250 crore in past years, the scheme was already too small for a USD 440-plus billion export economy. It must be revived with a scaled-up budget of ₹2,500 crore annually, with funds released at least a year in advance to allow Indian firms to secure high-visibility slots at global fairs,” said GTRI founder Ajay Srivastava.
Support mechanisms stalled
Srivastava also said that “The MAI, which helped exporters participate in overseas exhibitions, has not received any funds in FY2025, the first such lapse in decades. As a result, exporters missed critical opportunities between April and August, and even if funds are released later, prime exhibition spaces booked 1-2 years in advance will no longer be available,” he said.
He recommended that IES be reinstated with a larger budget ( ₹ 15,000 crore per year ) with a five-year commitment, which would help exporters make secure plans as to what they wanted to do.
Emphasis on new initiatives
On the logistics side, Srivastava stated exporters are still facing delays and high costs at ports, and regular monitoring could reduce logistics costs by 5–7 per cent on the value of exports.
Declining funds for export promotion
GTRI mentioned that export promotion support has been decreasing over the years. The previous MEIS scheme had a ₹45,000 crore budget and supported 40,000 exporters, and it was replaced in 2020 with RoDTEP and RoSCTL with just ₹20,000 crore.
“The bulk of funds were shifted to the PLI scheme, which has benefitted fewer than 100 firms, with limited disbursements. To restore balance, India must allocate higher amounts annually to broad-based export schemes, ensuring widespread support for MSMEs, while continuing PLI for large-scale sectors,” he suggested.
The way forward
According to GTRI, India cannot suddenly divert to new places. However, if 5-10 percent cost savings are made through better schemes and simplified rules of engagement, then exporters will have time and space to get accustomed during this time, especially when the US has placed 50 percent tariffs on Indian goods.
