Market Development Assistance (MDA) Scheme – A Comprehensive Guide

Introduction

The Market Development Assistance (MDA) Scheme is an initiative by the Government of India to promote the export of Indian products and services, particularly from Micro, Small, and Medium Enterprises (MSMEs), export promotion councils (EPCs), and cooperative societies.

The scheme provides financial support to eligible organizations and businesses to participate in international trade fairs, exhibitions, buyer-seller meets, and other export promotion activities. It aims to enhance the global competitiveness of Indian exporters and support their entry into new and emerging markets.

Objectives of the MDA Scheme

The Market Development Assistance Scheme has the following key objectives:

• Promote Indian Exports by supporting MSMEs and other organizations in showcasing their products globally.
• Encourage MSMEs to Explore Foreign Markets and expand their international presence.
• Provide Financial Assistance for participation in overseas trade fairs, exhibitions, and buyer-seller meets.
• Increase Brand Visibility of Indian products and services in international markets.
• Support Export Promotion Councils (EPCs) and trade organizations in conducting overseas promotional activities.
• Help Cooperative Societies and Farmer Groups market their agricultural and handicraft products globally.

Key Features of the MDA Scheme

• Financial Assistance for Export Promotion Activities
  Provides partial reimbursement of travel expenses, stall rent, and promotional activities.
• Support for MSMEs, EPCs, and Cooperatives
  Helps small businesses, export councils, and trade organizations gain visibility in international markets.
• Focus on Emerging and Non-Traditional Markets
  Encourages exports to Africa, Latin America, ASEAN, and other non-traditional markets.
• Subsidies on Participation in Trade Fairs & Exhibitions
  Covers international and domestic trade promotion events.
• Encourages New Exporters
  Supports first-time exporters in entering global markets.

Eligibility Criteria for the MDA Scheme

To avail of financial assistance under the Market Development Assistance (MDA) Scheme, applicants must meet the following eligibility conditions:

1. Eligible Entities

✅ Micro, Small, and Medium Enterprises (MSMEs)
✅ Export Promotion Councils (EPCs) and trade associations
✅ Cooperative Societies and Farmer Producer Organizations (FPOs)
✅ Government agencies involved in export promotion
✅ State & Central Government Institutions promoting exports

2. Export Turnover Criteria

• The applicant should have an FOB (Free on Board) export turnover of up to ₹30 crores in the previous financial year.
• The organization must be a registered exporter with a valid Import Export Code (IEC).

3. Activities Covered Under MDA

The MDA Scheme provides financial support for the following activities:

✅ Participation in International Trade Fairs & Exhibitions
✅ Export Promotion Seminars & Workshops
✅ Buyer-Seller Meets (BSMs) Abroad
✅ Market Surveys & Trade Delegations
✅ Publicity & Branding for Indian Products in Foreign Markets

4. Restrictions on Assistance

• Companies can avail of MDA benefits for only three events per year.
• The scheme covers only one representative per company for foreign participation.
• Financial assistance is available only for economy-class air travel.

Financial Assistance Under the MDA Scheme

The financial support under the Market Development Assistance Scheme varies depending on the category of the applicant and the country of participation.

1. Reimbursement for MSMEs

2. Reimbursement for Export Promotion Councils (EPCs)

3. Subsidies for Cooperative Societies & FPOs

How to Apply for the MDA Scheme?

Applying for Market Development Assistance (MDA) Scheme involves the following steps:

Step-by-Step Application Process

1. Pre-Approval

• Submit an MDA application at least 14 days before the event.
• Provide details about the trade fair/exhibition/buyer-seller meet.
• Obtain approval from the respective Export Promotion Council (EPC) or concerned authority.

2. Participation & Expense Documentation

• Participate in the approved trade fair, exhibition, or business delegation.
• Keep all travel and participation-related receipts and invoices.

3. Submission of Reimbursement Claim

• Submit the MDA reimbursement claim within 90 days after returning from the event.
• Provide the following documents:
  • Airfare tickets and boarding passes.
  • Proof of stall rent/payment for exhibition participation.
  • IEC certificate and export turnover statement.
  • Participation report with trade fair photographs.

4. Approval & Disbursement

• The application is verified by the EPC, Ministry of Commerce, or MSME Ministry.
• Reimbursement is processed and credited to the exporter’s bank account.

Documents Required for MDA Application

To apply for MDA, businesses must provide:

✅ MDA Application Form
✅ Export Promotion Council (EPC) Membership Certificate
✅ Import-Export Code (IEC) Certificate
✅ GST Registration Certificate
✅ Company PAN Card
✅ Trade Fair Invitation Letter & Participation Receipt
✅ Airfare Tickets & Boarding Passes
✅ Bank Account Details for Reimbursement

Benefits of the MDA Scheme

1. Encourages Small Exporters

• Helps MSMEs and first-time exporters explore international markets.

2. Reduces Financial Burden

• Provides partial reimbursement of export promotion costs.

3. Expands Market Access

• Supports businesses in entering non-traditional and emerging markets.

4. Strengthens Brand Recognition

• Promotes Indian products and builds brand reputation abroad.

5. Boosts Foreign Exchange Earnings

• Helps India increase export revenues by supporting small exporters.

Challenges in MDA Scheme Implementation

❌ Limited Awareness Among MSMEs – Many small businesses are unaware of MDA benefits.
❌ Delays in Reimbursement – Some applicants face processing delays in fund disbursal.
❌ Strict Eligibility Criteria – Companies with export turnover above ₹30 crores are ineligible.
❌ Capped Number of Events – Maximum of three events per year limits participation opportunities.

Comparison of MDA with Other Export Promotion Schemes

Conclusion

The Market Development Assistance (MDA) Scheme plays a vital role in promoting Indian exports by supporting MSMEs, export councils, and cooperatives in expanding their global reach. By providing financial aid for international trade fairs, exhibitions, and export promotion activities, the scheme helps small businesses compete in global markets and strengthens India's foreign trade presence.

For more information and application details, visit the Ministry of Commerce & Industry Website at commerce.gov.in.

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