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What Is the Market Development Assistance Scheme for MSMEs?

Q: What are the main documents required for MDA scheme application?

For the Market Development Assistance scheme ( MDA scheme full form ), invoices, payment receipts, company registration, and event participation proof.

By Tata Capital
05 January 2026
9 mins read
2982

What Is the Market Development Assistance Scheme for MSMEs?

Contributing almost 27% of the nation’s GDP, the Micro, Small, and Medium Enterprises (MSMEs) segment emerges as the backbone of India’s business ecosystem.

Over the last few years, MSMEs have grown significantly, with more individuals registering their own businesses under this category. Data shows that total MSME registrations have increased from 28.5 Lakhs in 2020 to more than 1.5 Cr in 2023.

The Indian government is keen on further elevating the MSME sector and has introduced targeted support programs for MSME entrepreneurs to enhance their businesses. One such initiative is the Market Development Assistance (MDA) Scheme, designed to the growth of MSMEs with funding assistance.

Read on to better understand the benefits of this initiative and find out how you can apply for this scheme as well.

What is Market Development Assistance (MDA)?

Overseen by the Ministry of Commerce, the Market Development Assistance Scheme is a government initiative that aims to aid the nation’s MSME sector. The scheme is specifically designed to help small and medium-sized businesses to tap into and expand in the global markets.

We are all aware of the importance of marketing in the growth and development of a particular business. Without proper utilisation of this strategic tool, most of the products and services offered by a business run the risk of going unnoticed.

While large businesses often have the resources required to properly market their products, small and medium-sized businesses often lag in that aspect. Even if their product is better than the larger enterprise, most MSMEs fail to grow because of a lack of customer attention to their goods.

The Market Development Assistance scheme seeks to provide that support to the MSME segment. This initiative empowers small businesses by providing them with apt support to participate in international trade fairs and exhibitions. This includes a subsidy for airfares and space rental costs, sector-wise market studies, and 75% reimbursement of registration fees.

Through these subsidies and assistance, the government is seeking high level of participation from MSME entrepreneurs in trade events. By showcasing their products in such events, businesses have better opportunities to market themselves. Ultimately, greater marketing will open avenues for increased exports at a global scale.

Objectives of MDA scheme

The marketing development assistance scheme was implemented to fulfil specific goals and objectives. These are:

1. To encourage and assist MSME entrepreneurs in tapping into the international markets.

2. To boost representation from MSME entrepreneurs in various international exhibitions and trade fairs.

3. To enhance exports from MSME businesses and increase participation at a global stage.

4. To popularise and boost the adoption of Bar coding at a large scale.

Key features of the Market Development Assistance scheme

Before you take any further steps, make sure you understand the following features of the Market Development Assistance Scheme:

1. Only units with a valid permanent registration with the Directorate of Industries can take advantage of the MDA scheme.

2. The final selection of the manufacturing units will be undertaken by MSME-DI after careful consideration of the product profile, trade fair motive, and space availability.

3. The benefits of the MDA scheme can only be availed once a year.

4. The subsidy on airfare can be availed by only one individual from the participating business.

5. If the spaces are booked a month in advance, then the participating business only has to pay 50% of the rental charges at the trade fair/exhibition.

6. Women entrepreneurs of the SC/ST segment or belonging to the Northeastern region do not have to pay any rental charges.

7. The representative of the participating MSME business must carry their own samples for display at the trade fair/exhibition.

Eligibility for Marketing Development Assistance scheme

MSME entrepreneurs or industries can avail of the MDA scheme for exporters after they meet the following eligibility criteria:

1. The applicant must be registered with their respective Act. For instance, societies must be registered under the Societies Act, companies should be registered under the Companies Act, and so on.

2. The applicant’s business must have the last 3 years’ regular audited accounts.

3. The applying organisation must primarily focus on the promotion and development of MSMEs.

4. Financial aid will only be granted for events that fall under the approved list of trade fairs and exhibitions formed by the Ministry of MSME.

Benefits of MDA scheme for MSMEs

For MSMEs looking to expand globally, structured government support can significantly reduce the cost and risk of overseas marketing.

Market access: The MDA scheme helps MSMEs enter international markets through subsidised participation in trade fairs and exhibitions.

Export growth: Financial support for airfare, stall rent, and publicity reduces overseas marketing costs, encouraging consistent export activities.

Brand building: Global exposure helps MSMEs showcase products, build trust with international buyers, and strengthen brand visibility.

Networking opportunities: Buyer–seller meets and exhibitions enable direct interaction with importers, distributors, and trade bodies.

Cost efficiency: Subsidies lower financial risk, especially for first-time exporters and small businesses.

Global competitiveness: Exposure to international markets helps MSMEs understand global trends, pricing, and quality standards.

Business expansion: Understanding the full form of MDA scheme enables MSMEs to plan structured international marketing and scale sustainably.

MDA scheme subsidies & reimbursement: Airfare, stall rent, publicity & more

The Market Development Assistance (MDA) scheme offers financial support to Indian exporters, MSMEs, and trade bodies to promote exports in international markets. The MDA scheme full form is Market Development Assistance Scheme, designed to reduce the cost burden of participating in overseas trade fairs, exhibitions, and buyer–seller meets.

Under this scheme, eligible participants can claim reimbursement for several expenses. These include economy-class airfare for international travel, stall or space rent at approved exhibitions, and expenses related to publicity and promotional materials such as brochures, banners, and product catalogues. In some cases, costs for local transport, booth fabrication, and display material may also be covered, subject to prescribed limits.

The subsidy amount varies based on the category of applicant and the event location, with higher support for first-time exporters and MSMEs. Understanding the full form of MDA scheme and its coverage helps businesses plan international marketing activities more effectively while keeping expenses under control and improving global visibility.

Which costs are covered under MDA? (Expense checklist)

Under the MDA scheme, various expenses related to promoting MSMEs in domestic and international markets are covered. Key costs include:

Participation fees for trade fairs, exhibitions, and buyer-seller meets

Stall or booth construction, design, and decoration

Freight and transportation of goods for events

Travel, boarding, and lodging for staff representing the enterprise

Publicity and promotional materials like brochures, catalogues, and digital campaigns

These expenses ensure MSMEs can effectively showcase products, access new markets, and strengthen their brand presence.

How does MDA reimbursement work for MSMEs?

The MDA scheme reimburses eligible MSMEs for approved promotional expenses after event participation.

First, the enterprise incurs costs for activities like trade fairs, exhibitions, or marketing campaigns. Then, it submits proof of expenditure, invoices, bills, and payment receipts, to the concerned authority. Once verified, a pre-determined percentage of eligible costs is reimbursed directly to the MSME’s account.

This process ensures financial support, reduces upfront burden, and encourages small businesses to expand their market reach and promote products confidently.

MDA scheme for MSMEs: Participation limits, selection scorecard & penalties

The MDA scheme full form is Market Development Assistance Scheme, which supports MSMEs in promoting exports through trade fairs, exhibitions, and international marketing events.

Under this scheme, participation limits are defined based on the size of the enterprise, category of the event, and whether the applicant is a first-time or repeat participant. MSMEs can claim reimbursement for expenses such as airfare, stall rent, publicity materials, and local transportation, up to specified caps.

A selection scorecard is used to prioritise applicants, considering factors like export potential, product category, past participation, and financial standing.

Non-compliance with scheme rules, submitting false claims, or exceeding participation limits can lead to penalties, including partial or full disallowance of claims.

Also,read: Udyam Registration: Want To Cancel Your MSME License Online?

Documents required for MDA scheme application

To avail of the benefits offered by the MDA scheme, applicants must have the following documents ready:

1. Application form

2. Estimated budget

3. Business registration certificate

4. Memorandum and articles of association

5. Profit & loss account/Audited balance sheet/Income & expenditure account of the last 3 years

How to apply for MDA scheme (Step-by-step application process)

To apply for the Market Development Assistance Scheme, you need to follow these steps:

1. Visit the official website of the International Corporation Scheme and select the Market Development Assistance Option.

2. If you are a new user, register yourself on the web portal.

3. Depending on the type of organisation you are registered with, you need to select one of the two options: Niti Ayog NGO Darpan or Govt Institute/PSU/Autonomous Body.

4. Complete the registration process and avail your User ID and password that is sent to your registered email address.

5. Log in and fill up the application form with the required details. Once done, you need to hit submit.

Also,read: – List Of Businesses That Come Under the MSME Sector

Conclusion

The Market Development Assistance Scheme stands as a testament to the government’s commitment to nurturing the growth of the country’s MSME segment. From providing financial aid to marketing assistance, the MDA scheme allows small businesses to penetrate the international markets.

If you also have the zeal to be a successful entrepreneur, kickstart your new business venture by securing an MSME loan with Tata Capital. Renowned for its competitive interest rates, streamlined application process, and quick fund disbursement, Tata Capital business loans is your gateway to a successful entrepreneurial journey.

FAQs

What is the full form of MDA Scheme in MSME?

The full form of MDA Scheme is Market Development Assistance Scheme for MSMEs.

What are the benefits of the MDA scheme for MSMEs?

It provides financial support, promotes exports, enhances brand visibility, and reduces participation costs in trade fairs and exhibitions.

Which trade fair and exhibition costs are covered under the MDA scheme?

Stall fees, booth design, freight, travel, lodging, and promotional materials are eligible for reimbursement.

How do I apply for the MDA Scheme as an MSME exporter?

Submit the online application via the MSME portal with event details and estimated expenses for approval.

Who is eligible for MDA reimbursement and how often can it be claimed?

Registered MSMEs can claim reimbursement once per approved event, subject to scheme guidelines.

What are the main documents required for MDA scheme application?

For the Market Development Assistance scheme (MDA scheme full form), invoices, payment receipts, company registration, and event participation proof.

How does MDA Scheme help Indian MSMEs expand into global markets?

It funds international trade participation, enabling exposure, networking, and export opportunities.

What penalties apply if sanctioned MSME participation is not fully mobilized?

Partial or non-participation can lead to reduced reimbursement or disqualification from future MDA support.

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