Financial Support Mechanisms: SEPC's Assistance Programs for Service Exporters

Financial Support Mechanisms: SEPC’s Assistance Programs for Service Exporters

By AdminPublished On: February 20, 2025Categories: Services Export Promotion Council (SEPC)0 Comments

The global marketplace offers immense opportunities for service exporters to expand their reach and tap into new markets. Recognizing the potential of India’s service sector, the Services Export Promotion Council (SEPC) has been instrumental in providing financial support and incentives to service exporters. One of the flagship programs under SEPC is the Market Access Initiative (MAI) Scheme, designed to bolster India’s exports on a sustained basis. This article delves into the various financial aid and incentives available through SEPC, focusing on the MAI Scheme, and elucidates how exporters can leverage these programs to their advantage.

Services Export Promotion Council (SEPC): An Overview

Established by the Ministry of Commerce and Industry, Government of India, SEPC serves as a nodal agency to promote the export of services from India. Its primary objective is to facilitate and support service exporters by providing them with the necessary resources, guidance, and financial assistance to navigate international markets effectively. SEPC’s initiatives are tailored to enhance the competitiveness of Indian service providers globally.

Market Access Initiative (MAI) Scheme: Catalyzing Export Growth

The Market Access Initiative (MAI) Scheme is a pivotal export promotion program envisioned to act as a catalyst in promoting India’s exports. Formulated with a focus product-focus country approach, the scheme aims to identify specific markets and products through comprehensive market studies and surveys. Assistance under the MAI Scheme is extended to various entities, including Export Promotion Organizations, Trade Promotion Organizations, National Level Institutions, Research Institutions, Universities, Laboratories, and individual exporters. The overarching goal is to enhance exports by accessing new markets or increasing the share in existing ones.

Key Activities Eligible for Financial Assistance under MAI Scheme

Marketing Projects Abroad: Financial support is provided for activities such as participation in international trade fairs, exhibitions, and buyer-seller meets. This includes assistance with venue costs, publicity, catalogues, translation services, and other related expenses.
Capacity Building: Initiatives aimed at enhancing the skills and capabilities of exporters, including training programs, workshops, and seminars, are eligible for assistance.
Support for Statutory Compliances: Exporters can receive financial aid for expenses incurred in obtaining certifications and meeting regulatory requirements in foreign markets, ensuring their products or services comply with international standards.
Market Studies: Conducting in-depth market research and surveys to identify potential markets and understand consumer behavior is supported under the scheme. This enables exporters to tailor their offerings to meet the specific demands of target markets.
Project Development: Assistance is available for developing projects that have the potential to boost exports, including feasibility studies and project reports.
Developing Foreign Trade Facilitation Web Portals: Creating and maintaining web portals that provide vital information and facilitate trade processes for exporters are supported under the MAI Scheme.
Support to Cottage and Handicraft Units: Special provisions are made to assist small-scale and cottage industries in promoting their unique products in international markets.

Financial Assistance Details

The level of assistance under the MAI Scheme varies based on the activity:

Market Studies: Up to 75% of the total cost is covered, with the remaining 25% borne by the implementing agency.
Participation in Trade Fairs and Exhibitions: Two-thirds of the actual expenditure is reimbursed, subject to a ceiling of ₹50 lakh per event.
Publicity Campaigns: Assistance of 50% of the total cost is provided, with a maximum limit of ₹50 lakh per annum per market.
Opening Showrooms and Warehouses: Financial support is extended to cover leasing or rental charges, with 75% assistance in the first year, 50% in the second year, and 25% in the third year, subject to a ceiling of ₹50 lakh per annum per market.
Registration Charges for Product Registration Abroad: For sectors like pharmaceuticals, biotechnology, and agro-chemicals, 50% of the registration charges are reimbursed, up to ₹5 lakh per registration, with a maximum of five registrations per year per exporter.

These financial aids are designed to reduce the burden on exporters, enabling them to focus on expanding their global footprint without being impeded by financial constraints.

Benefits to Exporters

By availing the financial assistance and incentives provided by SEPC through the MAI Scheme, exporters can:

Expand Market Reach: Access to financial support for participating in international events and conducting market research allows exporters to explore and penetrate new markets effectively.
Enhance Competitiveness: Assistance in obtaining necessary certifications and compliance ensures that Indian services meet international standards, making them more competitive globally.
Brand Building: Support for publicity campaigns and display in international departmental stores aids in building a strong brand presence in foreign markets.
Risk Mitigation: Financial aid reduces the financial risks associated with entering new markets, allowing exporters to venture into diverse regions with confidence.

Altus Exports: Your Partner in Global Expansion

While SEPC provides the necessary financial frameworks, partnering with experienced export facilitators like Altus Exports can further streamline the process of entering international markets. Altus Exports specializes in assisting Indian manufacturers in exporting their products globally, ensuring compliance with international standards and optimizing market entry strategies.

How Altus Exports Can Assist

Expertise in Finding Buyers: Leveraging a vast network and comprehensive databases, Altus Exports identifies potential buyers for your products across various international markets.
Market Intelligence: Access to up-to-date market intelligence enables Altus Exports to provide insights into market trends, helping manufacturers make informed decisions.
Marketing Support: A skilled marketing team employs a blend of traditional and digital marketing techniques to promote products effectively in the international arena.
Regulatory Compliance: Assistance in navigating the complex landscape of international regulations ensures that your products meet all necessary standards and certifications.