Market Development Assistance Scheme

MDA, or Market Development Assistance, is a government initiative that helps small and micro exporters explore and expand into international markets. It supports their participation in international trade fairs and exhibitions through the MSME India stall, helping them showcase their products to a global audience.

The scheme also focuses on increasing exports from small and micro manufacturing enterprises while promoting the widespread adoption of barcoding to improve product identification and competitiveness.

Also Read: What is MSME and Why Is It Importance

There are various benefits of using the MDA scheme for exporters and other MSME entities. Some of them are as follows:

Marketing & Promotional Support

The scheme provides financial assistance for marketing and promotional activities. MSMEs can receive reimbursement of up to 25% of the cost incurred for developing digital or print publicity materials, including brochures, catalogues, and promotional literature.

Global Network Access

The MDA Scheme enables MSMEs to participate in international trade fairs and exhibitions, helping them connect with global buyers, business partners, and industry experts while exploring new export opportunities.

Direct Expense Reimbursement

Under the Market Development Assistance Scheme, eligible businesses can claim reimbursement for various approved expenses. This includes stall charges, airfare, and product publicity costs, etc. It reduces the financial burden of participating in overseas marketing activities.

Supports Business Expansion

By improving market visibility and providing access to domestic and international markets, the MDA scheme helps MSMEs expand their customer base, increase exports, and strengthen their overall business growth.

Also Read: What is the MSME Act 2015?

Small and micro manufacturing enterprises can participate in international trade fairs and exhibitions under the MSME India stall if they meet the following conditions:

• The enterprise must have a valid permanent registration with the Directorate of Industries or District Industries Centre (DIC).
• Selection is based on the product category, theme of the trade fair, and availability of exhibition space.
• An MSME can avail this benefit only once in a financial year.
• An airfare subsidy is available to only one representative from each participating enterprise.
• General category enterprises must pay 50% of the stall rental charges for a minimum space of 6 sq. m. at least one month before the event. They can also book additional space by paying the applicable charges. Women entrepreneurs, SC/ST entrepreneurs, and entrepreneurs from the North Eastern Region are exempt from paying stall rental charges.
• Participating enterprises are responsible for transporting, displaying, and returning their product samples, including handling customs clearance and other related formalities.

Micro, Small, and Medium Enterprises (MSMEs) or exporters can submit the application to the relevant authorities at least 14 to 30 days before participating in international trade exhibitions or fairs. Here are the steps businesses need to follow

Step 1: Check Your Eligibility

Before submitting an application, you need to ensure that you meet the specified eligibility criteria.

Step 2: Submit Prior Intimation

Visit the MDA-IC Scheme portal, click on the “New User Register” option if you are applying for the first time. If you already have credentials, login into the account directly.

Step 3: Fill Out the Application Form

Fill out the application form with accurate details, such as your name, business name and a proposed budget estimate for attending the event.

Step 3: Upload Required Documents

Along with this, you also need to provide supporting documents, such as a copy of the MSME registration, an official invitation from the fair organiser, etc.

Step 4: Claim Reimbursement After the Event

After attending the event, you can submit the reimbursement claim request along with supporting documents.

Step 5: Claim Verification and Approval

The official will thoroughly verify the document and form, and upon approval, will disburse the eligible amount.

Here is the list of documents to file for the Market Development Assistance Scheme claim:

• A signed declaration form.
• Certificate of Incorporation or Partnership Deed.
• Board Resolution or Power of Attorney authorising a partner or director to apply for the scheme.
• Chartered Accountant (CA) certificate as proof of expenses incurred for participating in the exhibition.
• Passport of the participating representative with visa and immigration/emigration stamps (for international exhibitions).
• Copy of the boarding pass.
• Change of Land Use (CLU) certificate or No Objection Certificate (NOC) from the competent authority, if applicable, along with land ownership proof.
• Copy of the enterprise's PAN card.
• Proof of expenses for stall charges, shipping, display materials, accommodation, and travel.
• Copy of the Udyam Registration Certificate (URC)

Note: The total financial assistance is limited to ₹3.50 lakh per tour or case.

• Submission of false information or forged documents may lead to rejection of the application.
• Any financial assistance received through misrepresentation can be recovered by the authorities.
• Enterprises found in violation of the scheme guidelines may be disqualified from future benefits.
• Misuse of funds for purposes other than those approved under the scheme may attract administrative action.
• The concerned government authority may impose additional penalties or take legal action in accordance with the applicable rules and regulations.

The Market Development Assistance (MDA) Scheme is a valuable government initiative that helps MSMEs and exporters expand their market reach and improve business growth. By offering financial assistance for trade fairs, exhibitions, promotional activities, and overseas marketing, the scheme enables businesses to explore new opportunities with reduced costs.

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