Market Access Initiative

The Market Access Initiative (MAI) is a policy framework introduced by the Government of India to enhance the export potential of Indian products and services by assisting exporters, trade promotion organisations, and industry associations in accessing new international markets. Launched by the Ministry of Commerce and Industry, the scheme is designed to support export promotion activities through financial assistance for marketing, brand building, and participation in trade events abroad. It plays a crucial role in India’s export strategy under the broader vision of increasing the country’s global trade competitiveness.

Background and Objectives

The Market Access Initiative was formulated in the early 2000s to replace earlier export promotion programmes that were fragmented and limited in scope. The policy was aligned with India’s growing participation in international trade following economic liberalisation.
The primary objectives of the MAI are to:

• Promote Indian exports in new and emerging international markets.
• Enhance the visibility and brand image of Indian products abroad.
• Support exporters and trade bodies in organising and participating in promotional activities.
• Facilitate market intelligence and product adaptation according to international standards.
• Diversify India’s export basket and reduce dependence on traditional markets.

The initiative thus aims to provide structured assistance for both product and market diversification, ensuring Indian exporters remain competitive in the dynamic global marketplace.

Scope and Coverage

The Market Access Initiative provides comprehensive support for a wide range of export promotion activities. It covers sectors including agriculture, textiles, handicrafts, engineering goods, pharmaceuticals, information technology, and services. The scheme is open to several eligible entities such as:

• Export Promotion Councils (EPCs)
• Industry and trade associations
• Exporters and manufacturing companies
• Indian missions abroad
• State trading corporations and commodity boards

Under MAI, assistance is generally provided on a cost-sharing basis, ensuring accountability and optimal utilisation of funds.

Key Components of the Scheme

The MAI operates through various components that target specific aspects of export promotion.
1. Market Studies and ResearchFinancial support is provided for conducting market surveys, sectoral studies, and research on product-market opportunities. These studies help exporters identify demand trends, pricing structures, and regulatory requirements in target markets.
2. Product Development and Brand PromotionThe initiative encourages branding of Indian products in global markets. Activities include:

• Registration of brands and patents abroad.
• Packaging improvements and product adaptation to meet foreign standards.
• Publicity campaigns through media, fairs, and online platforms.
• Establishment of showrooms, warehouses, and display centres in overseas markets.

3. Participation in Trade Fairs and ExhibitionsMAI funds are allocated to facilitate the participation of Indian exporters in international exhibitions, buyer-seller meets, and trade delegations. These platforms enable direct interaction between exporters and potential buyers, promoting long-term trade relationships.
4. Capacity Building and TrainingAssistance is extended for training programmes, workshops, and seminars to enhance the marketing and export capabilities of entrepreneurs, particularly Micro, Small and Medium Enterprises (MSMEs).
5. Support for Export Promotion OrganisationsThe scheme provides grants to Export Promotion Councils (EPCs), commodity boards, and state-level agencies for establishing market presence abroad and conducting integrated marketing programmes.
6. Assistance to Indian Missions AbroadIndian embassies and high commissions play a vital role in market promotion. MAI funds may be used for organising cultural-cum-trade events, buyer-seller interactions, and product promotion campaigns through these missions.

Funding Pattern and Financial Assistance

The financial assistance under the MAI varies depending on the nature of activity and the organisation involved. The general funding structure includes:

• 100% assistance for studies, seminars, and promotional activities undertaken by government bodies and EPCs.
• 50–75% cost sharing for trade fairs, publicity, and brand promotion activities by industry associations or individual exporters.
• Assistance ceilings determined annually by the Department of Commerce based on budget allocations.

Funds are released in instalments and are subject to strict utilisation guidelines, ensuring transparency and efficiency in implementation.

Implementation Mechanism

The Department of Commerce, under the Ministry of Commerce and Industry, is the nodal authority for the implementation of the MAI. The scheme is administered through a Committee on Market Access (CMA), which evaluates and approves project proposals.
The committee assesses proposals based on:

• Export potential of the product or sector.
• Market opportunity and expected outcomes.
• Cost-benefit ratio and sustainability.
• Alignment with India’s foreign trade policy objectives.

Once approved, the projects are implemented in collaboration with concerned EPCs, trade bodies, and Indian missions. Periodic reviews and monitoring ensure that activities lead to measurable export growth.

Achievements and Impact

Since its inception, the Market Access Initiative has made a significant contribution to India’s export promotion efforts. Its impacts include:

• Enhanced visibility of Indian products in global markets through brand promotion.
• Increased participation of Indian exporters in international trade fairs and buyer-seller meets.
• Development of new markets in regions such as Africa, Latin America, and Eastern Europe.
• Support for niche sectors, including handicrafts, organic products, and traditional goods.
• Strengthening of export infrastructure through the establishment of warehouses and showrooms abroad.

By enabling small and medium enterprises to participate in global value chains, the MAI has contributed to broad-based export growth and regional economic development within India.

Challenges and Criticism

Despite its positive outcomes, the MAI faces certain operational challenges:

• Limited awareness among small exporters regarding available assistance.
• Delays in fund disbursement and procedural complexities in application processes.
• Overlap with other export promotion schemes, leading to administrative inefficiency.
• Inconsistent impact assessment, making it difficult to measure long-term results.

There have been calls for greater coordination between the MAI and other schemes such as the Market Development Assistance (MDA) and Trade Infrastructure for Export Scheme (TIES) to ensure synergy in export promotion efforts.

Recent Developments and Reforms

In recent years, the MAI has been restructured to align with India’s Foreign Trade Policy (2015–2020 and beyond). Emphasis has been placed on digital marketing, e-commerce promotion, and branding of Indian Geographical Indications (GIs) in overseas markets.
The scheme now promotes:

• Virtual trade fairs and online B2B meetings, especially after the COVID-19 pandemic.
• Promotion of services exports, including information technology, education, and healthcare.
• Sustainability-driven exports, focusing on eco-friendly and ethically produced goods.