IPS for MSMEs — Export Doubling Incentive of Up to ₹30 Lakh

The Investment Promotion Scheme (IPS) for the MSME Sector is an umbrella programme of the Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu. Nested inside it is a focused sub-scheme — Incentives For Doubling Of Export Values — that returns money to MSME manufacturers and service providers who grow their overseas sales sharply.

The umbrella scheme has been in force since 3 July 2015 and now runs until 19 May 2027. The current window covers units that begin commercial production between 20 May 2022 and 19 May 2027, so both fresh units and established units going in for expansion or diversification can fit within it.

The wider IPS framework is not only about exports. It is meant to shield MSMEs from market fluctuations, increase the share of women in business ownership, bring down unemployment in the region and encourage the employment of local residents.

For a single enterprise, the working of the sub-scheme is simple: grow your export value to double what it was in the previous financial year, and the government reimburses a percentage of that export value back to you. Women entrepreneurs are reimbursed at a higher rate than other entrepreneurs, and the maximum payable is ₹30,00,000.

• Reimbursement of 1–2% of export value, capped at ₹20,00,000 for other entrepreneurs and ₹30,00,000 for women entrepreneurs
• Open to new MSME units and existing MSME units undertaking expansion or diversification
• Unit must be located in Dadra and Nagar Haveli and Daman and Diu, with commercial production beginning between 20 May 2022 and 19 May 2027
• Incentive can be claimed for every annual year of the scheme, which runs till 19 May 2027
• Application window closes on 30 September 2024 for the relevant previous financial year

The applicant has to be a unit in the MSME sector operating in the Union Territory of Dadra and Nagar Haveli and Daman and Diu.

• New manufacturing or service units qualify, and so do existing manufacturing or service units that have undertaken expansion or diversification.
• Commercial production must have commenced between 20 May 2022 and 19 May 2027.
• The unit must be located in the U.T. of Dadra and Nagar Haveli and Daman and Diu.
• The claim has to be filed within six months from 31 March of the previous financial year — that is, the year in which the export performance was recorded.
• The enterprise must actually have doubled its export value compared to the preceding financial year.

Applicants fall into one of two categories for the purpose of the payout rate: women entrepreneurs and other entrepreneurs.

IPS for MSMEs — Export Doubling Incentive of Up to ₹30 Lakh is open to startups at any stage. It is open to startups registered anywhere in India.

The most recent application window for IPS for MSMEs — Export Doubling Incentive of Up to ₹30 Lakh closed on 30 Sept 2024. Many programmes run repeat cohorts, so it is worth checking the official site for the next round.

Support under this sub-scheme comes as a reimbursement — a cash return on exports already made, rather than a grant paid in advance or an investment in the company.

• Women entrepreneurs: reimbursement of 2% of export value, subject to a ceiling of ₹30,00,000.
• Other entrepreneurs: reimbursement of 1% of export value, subject to a ceiling of ₹20,00,000.

The incentive can be claimed for every annual year throughout the scheme period, which means a unit that keeps doubling its export value can keep drawing the benefit year after year instead of receiving it only once.

The support is paid by the Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu, and is non-dilutive — no equity or ownership stake in the business is taken in return.

IPS for MSMEs — Export Doubling Incentive of Up to ₹30 Lakh is offered by Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

Applications are first screened against the eligibility conditions — the unit's location in the Union Territory, the date on which its commercial production commenced, and its status as an MSME-sector unit.

The decisive evaluation criterion is export performance: whether the enterprise has doubled its export values over the previous financial year.

Claims that clear the screening are then taken up for processing of the reimbursement. The amount is worked out as a percentage of the export value, with the rate determined by the category of the applicant — 2% up to ₹30,00,000 for a woman entrepreneur, or 1% up to ₹20,00,000 for any other entrepreneur.

Before you apply to IPS for MSMEs — Export Doubling Incentive of Up to ₹30 Lakh, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

IPS for MSMEs — Export Doubling Incentive of Up to ₹30 Lakh is best suited for startups in India seeking non-dilutive funding of ₹20L – ₹30L. If that describes your startup, review the eligibility criteria above before applying.