Example : - Tourism etc.
MDA (Market Development Assistance)

As per clause 3.2.1 of the Exim / Foreign Development Investment (FDI) Policy Scheme, MDA Scheme is intended to provide financial assistance for a rangeof export promotion activities implemented by EPCs on aregular basis every year. The scheme is administered by Department of Commerce. Assistance includes, amongst others, participation in
(i) Trade Fairs and Buyer Seller meets abroad or in India, and
(ii) Export promotion seminars.
Financial assistance with travel grant is available to exporters traveling to Latin America, Africa, CIS region, ASEAN countries, Australia and New Zealand. In other areas, financial assistance without travel grant is available.

As you are aware, Indian construction engineering companies have been doing well at home for the last couple of years. Instead, they now have started to expand their horizons overseas.

Members’ participation has also increased in Overseas/ International Exhibitions over the last five years including participation by small & medium enterprises which have resulted in increased enthusiasm among them.

Market Development Assistance (MDA)  Guidelines for Exporters 


The Ministry of Commerce & Industry is operating Market Development Assistance (MDA) Scheme to help and encourage the exporters for their export promotion efforts. The objective of the Scheme is to give initial impetus to the exporters by way of financial grant to develop business relations with overseas buyers/markets on long-term basis.
Focus Area Programs
At present 4 Focus Area programs viz. Focus (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN+2) are under operation. The Government of India is giving special attention for developing business relations with countries of the Latin American (LA), Commonwealth of Independent States (CIS), African and ASEAN Region, including Australia and New Zealand as they have good export potential but have been long neglected. Additional incentives are being given for the export efforts for these regions which are mentioned in the MDA Scheme. 
MDA Disbursing Authorities
Under the MDA Scheme, Export Promotion Councils/FIEO etc. are designated by the Ministry as disbursing authorities of MDA Assistance to the member exporters. Project EPC disburse MDA to its member exporters for participation in fairs/exhibitions/BSMs/Trade delegations led by Project EPC for MDA assistance.

Activity covered under MDA Scheme   
Assistance to individual exporters for export promotion activities abroad – Participation in EPCs/FIEO etc. led Trade Delegations/BSMs/Trade Fairs/ Exhibitions.

Participation in Trade Fair/Exhibition   

Eligibility criteria for MDA grant

  • Exporting companies with an f.o.b. value of exports of upto Rs. 15 crore in the preceding year will be eligible for MDA assistance for participation in trade delegations/BSMs/fairs/exhibitions abroad to explore new markets for export of their specific product(s) and commodities from India in the initial phase.
  • This will be subject to the condition that the exporter is having complete 12 months membership with concerned EPC etc. and filing of returns with concerned EPC/organisation regularly.

Grant Ceiling  
Assistance would be permissible on travel expenses by air, in economy excursion class fair and/or charges of the built up furnished stall. This would, however, be subject to an upper ceiling mentioned in the table per tour.

Sl. No. (1)

Area/Sector (2)

No. of visits in a financial year (3)

Maximum financial
ceiling per event(4)


Focus LAC


Rs. 1,80,000


FOCUS AFRICA ( including WANA Countries)


Rs. 1,50,000




Rs. 1,50,000




Rs.  1,50,000


General Areas


Rs.     80,000*




General Areas

The participation of individual companies in the above activities shall be subject to the following conditions:

  • For EPC/FIEO led Trade Delegations/BSMs only air-fare by Economy Excursion class upto a maximum of Rs. 70,000 (Rs. 1, 00,000 in case of Focus LAC) shall be permissible.
  • For participation in Trade Fairs/Exhibitions reimbursement shall be permissible subject to ceilings mentioned in the column 4 in the above table.
  • Maximum number of permissible participations shall be five in a financial year    as indicated in above table (No travel grant is permissible for visit to General Areas).
  • However, for priority sectors, having large employment generation potential, viz. Agriculture including food items, Handicrafts, Handlooms, Carpets, Leather & Minor Forest Produce including LAC, 2 (two) participations  in General Areas would be admissible with the assistance of Rs. 1,50,000 for each participation. The exporters availing of assistance under this provision would, however, be in addition to these participations, eligible for only any 2 Focus Area participations.

Main Conditions*

  • Only 3 participations (including earlier participations) are allowed to a particular fair exhibition for claiming MDA.
  • The application must be received in concerned office with a minimum of 14 days clear advance notice (date of receipt of application & date of departure from country excluded).
  • The exporting company should not be under investigation/charge/prosecuted/debarred/black listed under the Foreign Trade Policy of India or any other law relating to export and import business EPCs/Commodity Boards/Export Development Authorities/ITPO/FIEO etc.,
  • Maximum MDA assistance shall be inclusive of MDA assistance received from all government bodies.
  • Assistance shall be permissible to one regular employee/director/ partner/proprietor of the company. Assistance would not be available to exporter of foreign nationality or holding foreign passport.
  • Member exporters of EPCs/FIEO would also be eligible for MDA assistance for participation in events organized by ITPO abroad. Their applications/claims would by routed/reimbursed through concerned EPC/FIEO.
  • Maximum MDA assistance shall be inclusive of MDA assistance received from all Govt. bodies/FIEO/EPCs/Commodity Boards/Export Development Authorities/ITPO etc.,
Documentation for Reimbursement of MDA Grant to Exporters:


  • Intimation application in Annexure I of Marketing Development Assistance Scheme (Revised Guidelines w.e.f. 01.04.2006) of the Ministry of Commerce & Industry, duly completed and signed shall be submitted by the exporter to the concerned EPC etc. giving clear 14 days advance notice. Intimation and the application must be sent electronically by email also.
  • Claim along with the declaration duly completed and the Certificate (as per Annexure II of Marketing Development Assistance Scheme (Revised Guidelines w.e.f. 01.04.2006) of the Ministry of Commerce & Industry) duly signed by a Chartered Accountant shall be submitted by the exporter to the concerned Organization (FIEO), EPC etc.) in the prescribed format (Annexure-VII) along with under mentioned papers immediately on return to India after completion of the activity but positively within 45 days of their return to India:
  • Details of activity undertaken earlier with MDA assistance to the same country/countries.
  • Legible photocopy of passport highlighting the entries about departure from and arrival into India and also the countries visited. In case, passport does not have arrival/departure dates regarding visits to various countries, some documentary evidence such as Hotel Bills, Boarding pass, lodging pass etc. be submitted. Original air ticket/jacket used during the journey. If Original air ticket/jacket is lost, a legible photocopy of the same along with a certificate from the concerned airline indicating following may be sent:

                   a)       Name of the traveler
                   b)       Ticket number
                   c)       Flight No.
                   d)      Date of departure from India
                   e)       Sectors/countries visited       
                   f)       Class in which traveled
                   g)       Economy excursion class fare for sectors/countries visited.
  (iii) Self certified f.o.b. value export figures during the last three financial years, year wise.
  (iv) Brief report about the activity participated and achievements made.
  (v) Self certified copies of receipt, bank advice etc. evidencing payment made towards stall charges, water & electricity.

  • Claim forms duly filled in and complete in all respects must be submitted to the concerned EPC, FIEO etc., within 90 days of return to India. However, claims submitted within 30 days from the expiry of the 90 days period may be entertained  by or wherein the deficiencies in the claim as intimated by the concerned EPC/FIEO etc., with 10% deduction. The claims which are submitted after 120 days of return to India shall not be entertained under any circumstances. Any  deficiencies in the claim as intimated by the concerned EPC, FIEO etc., must be completed within 30 days of the date of directions given in this regard failing which the claim shall stand rejected without any further intimation or reminder in this regard by the concerned EPC, FIEO etc. .
Procedure for Claiming MDA Grant
  • The concerned EPC/FIEO etc. will issue approval letter within 5 working days of receipt of application to the exporter.
  • Exporter is required to submit the claim along with the specified documents immediately on completion of the activity or within 3 months of the completion of the activity.
  • After the final approval of the case by MDA Committee & release of grant by the Ministry to concerned EPC/FIEO, the grant is released to the exporter.