What is the Market Development Assistance Scheme for MSMEs?

• The MDA Scheme provides financial aid to MSMEs to participate in approved domestic and international trade fairs, improving market access opportunities.
• MSMEs must score 60% on a selection scorecard; fair, inclusive, and transparent selection is essential for scheme participation.
• Eligible costs include stall rent, airfare, freight, advertising, registration, and allowances, with specific reimbursement limits set per MSME unit.

Micro, small, and medium enterprises (MSMEs) form the foundation of India's economy, contributing significantly to employment and GDP (gross domestic product). As of May 2025, India has 6.34 crore MSMEs, with 3.65 crore registered under Udyam (Udyam refers to the Udyam Registration, the official government portal for registering MSMEs in India).These enterprises span manufacturing, services, and trading, generating over 27 crore jobs. Despite their crucial role, MSMEs often struggle with market access, limiting their growth potential. In response, various initiatives have been introduced to strengthen their presence in domestic and international markets. One such scheme is the Market Development Assistance Scheme . Read on to find the details of this scheme.

The MDA Scheme is a government initiative aimed at promoting the export of Indian agricultural, horticultural, and processed food products. It provides financial support to exporters, export promotion councils, and trade bodies for participating in trade fairs, buyer-seller meets, and marketing events abroad. The scheme helps Indian producers access global markets, enhance brand visibility, and increase export competitiveness.

Here is what is required to apply for the MDA scheme.

• The applicant must be a registered MSME under the respective Act.
• The business must have maintained regular, audited accounts for the last three years.
• The applying organisation should primarily focus on the promotion and development of MSMEs.
• Financial aid is granted only for events that are included in the approved list of trade fairs and exhibitions curated by the Ministry of MSME.
• Only units with a valid permanent registration with the Directorate of Industries can avail of the scheme.
• MSME-DI undertakes the final selection of manufacturing units after evaluating the product profile, trade fair motive, and space availability.

Selection Criteria Under the Market Development Assistance Scheme MSMEs are selected for the MDA scheme based on the following criteria:

• Any MSME unit that scores below 60% on the prescribed eligibility scorecard will automatically be disqualified from participating in the scheme.
• An MSME entity cannot be chosen for more than two events within the same financial year. Participation beyond this limit will lead to disqualification.
• The selection process must be unbiased and transparent. Any evidence of unfair or opaque selection practices may disqualify the unit or applicant organisation.
• Preference must be given to applicants who have not previously benefited from government-funded participation. Repeat beneficiaries may be excluded to ensure broader outreach.
• Adequate representation must be maintained for SC/ST, women entrepreneurs, and units from the north-eastern region of the country. Ignoring this may render an application invalid.
• If the applicant fails to consider factors like past performance, growth trajectory, and potential for export while selecting participants, such oversight may lead to rejection of the application.

Also Read : Collateral Free Loan: How To Get MSMEs Business Loans?

Here is the checklist of items that qualify under the MDA Scheme: Minimum Delegation Size

• A minimum of 10 MSME units is required for a delegation to qualify.
• One office bearer from the participating organisation may also join the delegation.

Space Rent Reimbursement

• MSME participants are eligible for 100% stall rental reimbursement.
• The maximum limit is ₹3.00 lakh or actual expense, whichever is lower.
• Office bearers are not eligible for stall rental reimbursement.

Airfare Support

• MSME units with 100% economy airfare covered up to ₹1.50 lakh or actual, whichever is lower.
• Office bearers are eligible with the same reimbursement cap of ₹1.50 lakh that applies.
• Travel and stay duration should not exceed 30 days, including event dates.

Duty Allowance for Office Bearers

• A daily allowance of USD 150 is provided for the approved event duration.

Freight Charges

• Reimbursed up to ₹50,000 per MSME unit.
• For participation in Latin American countries: up to ₹75,000 per MSME unit.

Advertisement & Publicity Costs

• For delegations with up to 14 MSMEs: Reimbursement capped at ₹2.50 lakh.
• For groups with 15 or more MSMEs: Reimbursement up to ₹5.00 lakh.
• Claims must be backed by valid bills.

Registration Fees

• Up to ₹5,000 per MSME unit reimbursed or actual, whichever is less.

Government Official Participation

• If government officials are included in the delegation, their eligible expenses are reimbursed directly based on entitlement, and not from the budget allocated to industry associations.

Hosting International Events in India

• Expenses such as venue, catering, publicity, and security reimbursed up to ₹10.00 lakh or actuals, whichever is lower.
• Venue should not be a 5-star hotel unless special permission is granted by the Joint Secretary (Small and Medium Enterprises).

Airfare for Foreign Experts

• Reimbursement of up to ₹5.00 lakh or actuals for foreign speakers/resource persons.
• A minimum of three foreign experts are required to classify an event as international.

Here is the criteria for grant release under the MDA scheme:

• Grants under the scheme are disbursed based on the classification of applicant organisations into two categories: Category A and Category B.
• Category A includes Export Promotion Councils (EPCs) recognised under the Foreign Trade Policy and government-affiliated organisations under the Ministry of MSME.
• Recognised institutions in Category A include:

• For Category A applicants, 50% of the anticipated cost is released as an advance; the remaining 50% is paid after submitting a valid Utilisation Certificate (UC).
• If the grant objectives or conditions are unmet, any advance funds released must be repaid with interest.
• Persistent failure to submit Utilisation Certificates may lead to disqualification from further participation under this scheme.
• Category B covers all other applicant bodies not recognised as EPCs.
• Organisations under Category B are eligible for full reimbursement only after the completion of the event or activity.
• Reimbursement for Category B is processed upon submission of proper documentation via the IC Scheme Portal.

The key documents required for a smooth claim settlement under the MDA scheme are:

• A detailed post-event summary as per the format on the IC Scheme Portal.
• Proof of how the granted funds were utilised.
• Financial report audited by a Chartered Accountant, including sources of funding.
• Statement confirming no funds were received from any other Ministry or Department for the same activity.
• A valid Udyam Registration Certificate confirming MSME status.

Documents Required to File a Claim Under the MDA Scheme The key documents required to raise a claim under the MDA scheme are:

• Claim Form with a certification from a Chartered Accountant.
• A list of all participants, including scorecards for each.
• Bank-Verified Mandate Form filled by the applicant organisation and authenticated by their bank.
• A signed certification from the association confirming no financial support has been received from any other Ministry or Department for the same claim.
• A pre-receipt confirming the expected claim amount must be included.
• Valid Udyam Registration Certificates of all participating MSME units must be provided.
• A complete copy of the e-ticket with fare details and the original boarding pass for the destination city where the event was held.
• Original invoices and payment receipts for all costs claimed, such as stall charges, freight, advertising and publicity, registration or entry fees, platform usage, and interpretation services.

Here is the step guide to applying for the MDA Scheme.

• Step 1: Access the IC Scheme portal's home page. Select the option for Market Development Assistance to proceed. A login page will appear.
• Step 2: If applying for the first time, visit the MDA-IC Scheme portal and select the 'New User Registration' option to start the process.
• Step 3: You will be asked to pick between two categories: (1) Registered with NITI Aayog’s NGO DARPAN, or (2) Government Institution, Autonomous Body, or PSU.
• Step 4: Share the required details on the registration page. After submission, your user ID will be sent to the email address provided during registration.
• Step 5: Using your registered user ID, password, and the verification code shown on the screen, log in to the portal to access your personalised dashboard.
• Step 6: Go to the application section on the dashboard and fill out the necessary forms.

Penalty Under Market Development Assistance Scheme Under the MDA Scheme, penalties are applied if the applicant organisation fails to mobilise the approved number of MSMEs for an event. No penalty is imposed if 90% or more of the approved MSMEs participate. However, as the mobilisation percentage decreases, financial deductions are enforced on eligible publicity and office bearer reimbursements:

• 81–89% mobilisation : 10% deduction on advertising/publicity and office bearer reimbursement amounts.
• 71–80% mobilisation : 20% deduction on both components.
• 60–70% mobilisation : 30% deduction on both components.
• Below 60% mobilisation : No reimbursement is granted for publicity or office bearer expenses.

Empowering MSMEs for Global Reach The MDA Scheme is a vital lifeline to India's MSMEs. It helps them explore and access international and domestic markets. The scheme encourages inclusive growth by offering financial support for travel, stall rent, publicity, and event participation. With clear eligibility, reimbursement guidelines, and a transparent application process, the MDA Scheme fosters fair representation, export readiness, and entrepreneurial expansion. For additional funding support, MSMEs can also explore a business loan to meet their expansion or working capital needs. Also Read: Impact of GST on SME (Small & Medium Enterprises)