Indian Exporters Urge Over $3 Bn Allocation For Market Access Initiative Scheme

New Delhi, Jan 27 (KNN) Indian exporters are pressing for a substantial allocation of USD 3.88 billion for the Market Access Initiative (MAI) scheme, in anticipation of the Budget 2024.

This financial injection aims to propel Indian exports towards the ambitious USD 2 trillion target by 2030, reported Business Standard.

The Federation of Indian Export Organisations (FIEO) has critiqued the current MAI scheme's inadequate support, with a total allocation of less than Rs 2 billion for the current year.

The MAI scheme operates with a 'focus product-focus country' approach, utilising market studies and surveys to sustainably promote India's exports.

FIEO President (officiate) Israr Ahmed emphasised the need for aggressive export marketing, proposing the creation of a corpus amounting to a minimum of 0.5 per cent of the preceding year's exports for the MAI scheme. This strategic focus, supported by the government, is anticipated to particularly benefit small exporters.

FIEO has further advocated for a financial outlay of Rs 5,000 crore, to be shared between the Centre and states, for the District as an Export Hub (DEH) scheme.

This planned initiative, addressing infrastructure gaps through central-state funding, is envisioned as a game-changer that could spur exponential export growth from districts, bolstering state and national exports.

Highlighting that over 70 per cent of India's exports originate from five states, with Gujarat alone contributing over 30 per cent, FIEO emphasises the need for diversified growth.

Beyond the MAI scheme, exporters are calling for government support to encourage increased investment in the manufacturing sector and exports.

The appeal includes an extension of the sunset date for commencing manufacturing from March 31, 2024, to March 31, 2027, for companies benefiting from the 15 per cent concessional income tax rate. Additionally, there is a plea to focus on developing an Indian Shipping Line of global repute.

The Apparel Export Promotion Council (AEPC) has also joined the chorus, urging the government to raise interest equalisation rates to 5 per cent for all exporters under the Interest Equalisation Scheme.

This adjustment is seen as vital for enhancing the apparel industry's competitiveness in the international market and ensuring access to necessary working capital.

The recent downward revision from 3 to 2 per cent for non-MSME manufacturer exporters has posed a significant challenge, as the high cost of capital remains a bottleneck for the exporting community, as per the Export Promotion Council.

(KNN Bureau)