DGFT Launches FLOW Scheme to Reduce Overseas Logistics Constraints for MSMEs

The Directorate General of Foreign Trade has issued Trade Notice No. 28/2025-26 dated 20 February 2026 launching the Facilitating Logistics, Overseas Warehousing & Fulfilment (FLOW) initiative under the Export Promotion Mission – NIRYAT DISHA with immediate effect. The scheme aims to mitigate logistics-related constraints faced by MSMEs engaged in international value chains by supporting overseas warehousing, fulfilment, distribution, and market-facing infrastructure. Assistance is available to eligible Indian-incorporated entities such as Export Promotion Councils, logistics service providers, industry associations, and government organisations. Financial support is capped at 30% of project cost subject to specified ceilings and is limited to lease, rental, and operational expenses for up to three years. Approved projects must ensure at least 20% of annual merchandise volumes benefit Indian MSMEs. A structured governance mechanism, monitoring framework, fund disbursement conditions, utilisation certification requirements, and application process have been prescribed. The intervention will operate on a pilot basis, and stakeholder feedback is invited within 30 days.

Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi

Trade Notice No. 28/2025-26-DGFT | Dated: 20^th February 2026

Subject: Launch of Facilitating Logistics, Overseas Warehousing & Fulfilment (FLOW) Under Export Promotion Mission (EPM) – NIRYAT DISHA – reg.

The Support for Facilitating Logistics, Overseas Warehousing & Fulfilment (FLOW) under Export Promotion Mission (EPM) – NIRYAT DISHA is hereby implemented prospectively with immediate effect.

2. The intervention seeks to mitigate logistics-related constraints faced by MSMEs (involved in international value chains) in accessing overseas markets, and to facilitate improved delivery efficiency, reduced logistics costs and enhanced market responsiveness.

3. The assistance will support overseas logistics, warehousing, fulfilment and market-facing infrastructure that facilitate delivery and distribution in foreign markets, including creation of, or access to, overseas facilities or arrangements for storage, distribution, display, or fulfilment of goods, in accordance with the conditions prescribed.

4. The detailed Policy framework is enclosed as Annexure-I. The Operational and Procedural Guidelines is enclosed at Annexure-II. The Governance Structure is enclosed at Annexure-III.

5. The intervention shall be operationalised on a pilot basis for feedback, institutional learning, and data-driven refinements. The procedure for application is enclosed at Annexure-IV.

6. Applications under FLOW may be submitted via online form: https://forms.gle/4ztM5khT1WZxJudE9 until further notice.

7. The guidelines are further submitted for stakeholder feedback in accordance with Paragraph 1.07A of the Foreign Trade Policy (FTP) 2023. Stakeholders may submit comments and suggestions on the Guidelines within 30 days from the date of issuance of this Trade Notice, through email at epm-dgft@gov.in

This is issued with the approval of the Competent Authority.

Bharani VLSVSS
Deputy Director General of Foreign Trade

(Issued from F. No. 01/02/63/AM-26/EPM)

ANNEXURE-I to the TRADE NOTICE

POLICY FRAMEWORK

FACILITATING LOGISTICS, OVERSEAS WAREHOUSING & FULFILMENT (FLOW)

1. Objective

a. The objective of this initiative is to mitigate logistics-related constraints faced by MSMEs in accessing overseas markets, including limitations relating to overseas storage, distribution, fulfilment and customer service infrastructure.

b. The initiative seeks to support entities in improving delivery efficiency, reducing logistics costs and enhancing market responsiveness through access to overseas logistics and fulfilment arrangements.

2. Scope and Coverage

a. Assistance under this initiative will be available for eligible activities relating to overseas logistics, warehousing, fulfilment and market-facing infrastructure that facilitate delivery and distribution in foreign markets.

b. The assistance covers access to, overseas facilities or arrangements for storage, distribution, display or fulfilment of goods, in accordance with the conditions prescribed.

c. Support may extend to access-based and pay-per-use overseas fulfilment arrangements, including shared or rental warehousing and other market-aligned fulfilment models such as just-in-time delivery, drop-shipping, ready-to-ship inventory, or similar mechanisms.

d. The Operational and Procedural Guidelines including eligibility conditions, application and claim procedures, reporting and monitoring requirements, and verification mechanisms are prescribed under Annexure-II

ANNEXURE-II to the TRADE NOTICE

OPERATIONAL AND PROCEDURAL GUIDELINES

FACILITATING LOGISTICS, OVERSEAS WAREHOUSING & FULFILMENT (FLOW)

1. Definitions

a. “Overseas Warehousing Facility” means a facility located outside India used for storage, returns processing, or distribution of goods, whether owned, leased, or accessed through third-party arrangements.

b. “Overseas Fulfilment Arrangement” means a contractual arrangement to undertake local storage, last-mile delivery, customer service, or returns management in a foreign market.

c. “Display or Market Access Facility” means a physical overseas facility used for product display, sampling, buyer interaction, or consolidated showcasing of Indian products, without involving retail sales to final consumers.

d. “Eligible Entities” means an entity eligible to submit proposals under paragraph 2.

e. “Project” means a proposal approved under these guidelines

2. Eligibility, Scope & Coverage

a. Only entities incorporated in India under applicable Indian law shall be eligible for assistance.

b. The following entities may be considered for assistance under FLOW:

i. Export Promotion Councils (EPCs) and Commodity Boards recognised under Appendix 2T of the FTP

ii. Logistics, Warehousing or Fulfilment Service Providers having demonstrable international operations

iii. Industry associations or recognised exporter clusters

iv. Central and State Government organisations

v.  Entity recommended by the Central Government and State Government

vi. Entity recommended by the State Export Promotion Committee (SEPC) or District Export Promotion Committee (DEPC)

c.  Activities eligible for support shall include, inter alia:

i. Overseas Warehousing Facility

ii. Overseas Fulfilment Arrangements

iii. Display or Market Access Facilities, and

iv. E-Commerce Export Hubs (ECEHs) – support for export-linked warehousing, fulfilment and facilitation activities undertaken through notified E-Commerce Export Hubs located in India, as defined under Chapter 9 of the FTP, including integration with overseas fulfilment or distribution networks for cross-border e-commerce exports.

d. Approved Projects shall ensure that a minimum of 20% of the annual merchandise volumes are provided to Indian MSMEs.

3. Nature of Assistance

a. Expenditure eligible for support shall be restricted to lease or rental charges, common facility costs, and operational expenses directly attributable to the approved project excluding capital expenditure

b. Assistance up to a period of maximum 3 years shall be provided under FLOW.

4. Level of Assistance

The level of assistance for each of the sub-Interventions, subject to a support ceiling, is as follows:

a. Overseas Warehousing Facility – 30% of proposal cost subject to a maximum of Rs. 10 Crores per year

b. Overseas Fulfilment Arrangements – 30% of proposal cost subject to a maximum of 5 Lakh per month

c. Display or Market Access Facilities – 30% of proposal cost subject to a maximum of Rs. 5 Crores per year

d. E-Commerce Export Hubs – 30% of proposal cost subject to a maximum of Rs. 10 Crores per year

5. Submission of Proposals

Proposals shall be submitted online in the prescribed format, specifying clearly objectives, target markets, applicants, implementation arrangements, estimated costs and measurable outcomes.

6. Release of Funds

a. Financial assistance including advances shall be released to the eligible entity for the approved projects in two or more equal instalments on fulfilment of prescribed milestones and conditions.

b. The first instalment will be released after the proposal is approved. The remaining instalments will be released based on the overall performance of the entity in executing the project.

c. The instalments will be contingent on the entity submitting a utilisation certificate detailing the utilisation of previous instalments.

d. Certification of the physical and financial progress of the project by an entity would be a prerequisite for the release of further instalments.

e. Disbursement of assistance shall be subject to fulfilment of prescribed milestones, submission of utilisation certificates, and monitoring requirements.

f. Any advance released shall be liable for refund, along with applicable interest, in the event of failure to meet approved objectives, conditions, or deliverables.

g. Non-submission of prescribed reports, utilisation certificates within stipulated timelines may render the eligible entity ineligible for further assistance and may lead to recovery or other appropriate action.

7. Eligibility, Integrity and Disclosure

a. Eligible entity shall maintain proper books of account and audited financial statements in accordance with applicable law and shall make such records available for inspection or audit, as required.

b. The Eligible entity shall furnish an undertaking that assistance sought under this Intervention is not being availed for the same project or expenditure under any other scheme of the Government of India.

8. Project Implementation, Due Diligence and Sustainability

a. Eligible entities shall ensure that facilities, infrastructure and services supported under this Intervention are implemented and operated in a manner, consistent with the objectives of the initiative and the representations made in the approved proposal.

b. Where projects involve engagement with overseas buyers, distributors, service providers, or counterpart entities, the eligible entity shall undertake reasonable due diligence, including consultation with the concerned Indian Mission Abroad and relevant counterpart organisations, to ensure engagement with bona fide entities.

c. The eligible entity shall be responsible for obtaining all statutory approvals, licences and clearances required in the host country or jurisdiction for establishment and operation of the supported facility.

d. Proposals shall clearly indicate the operation, maintenance and sustainability framework for the facility or infrastructure created, including arrangements beyond the period of Government support.

e. Eligible entities shall endeavour to design projects in a manner that progressively reduces reliance on external financial assistance and moves towards financial and operational sustainability over the project lifecycle.

f. Where shortfall or delay in implementation arises due to circumstances beyond the control of the eligible entity, including force majeure events, the matter shall be placed for appropriate recommendation.

g. In cases of ineffective operations or conduct adversely affecting India’s commercial or reputational interests, appropriate measures including reduction or withdrawal of assistance, recovery of advances, or debarment from future support will be taken.

ANNEXURE-III to the TRADE NOTICE

GOVERNANCE STRUCTURE

FOR FACILITATING LOGISTICS, OVERSEAS WAREHOUSING & FULFILMENT (FLOW)

1. Sub-Committee on Warehousing and Logistics

a. Sub-Committee on Warehousing and Logistics (hereafter referred to as the “Sub-Committee”) will be constituted for advising, recommending activities and stakeholder coordination under this intervention.

b. The Sub-Committee shall advise on regulatory, procedural, or policy-related bottlenecks impacting implementation and recommend suitable remedial measures; support development of performance indicators, outcome metrics, and monitoring mechanisms to assess the impact of interventions and provide inputs for capacity building, awareness programs, and stakeholder outreach initiatives.

c. The composition of the Sub-Committee shall be as follows:

d. The Sub-Committee may co-opt members or invite any other participants as and when required.

e. Domain experts or industry representatives with demonstrated experience in overseas logistics, warehousing, or cross-border e-commerce may be associated for technical appraisal.

2. Operationalisation and Implementation of FLOW

a. The Export Promotion Mission (EPM) Section, DGFT(HQ) shall be responsible for operationalisation and implementation of FLOW including convening sub-committee meetings, operationalising online systems, disbursement of funds, and other related administrative functions.

b For effective implementation of the scheme, steps may be taken by the Department for oversight and outcome assessment as considered necessary relating to review of approved projects or activities to obtain first-hand feedback on implementation including interaction with officials of the concerned Indian Mission Abroad and other relevant stakeholders.

3. Role of Indian Missions Abroad

a. Proposals, where relevant, may be shared with the concerned Indian Mission abroad for comments or inputs, particularly in respect of local market conditions.

b. Indian Missions Abroad may, in an advisory capacity, provide inputs on market relevance, regulatory environment and broad feasibility of the proposed activity or arrangement.

c. At the request of the implementing authority, Indian Missions Abroad may facilitate information validation or due diligence relating to overseas partners, buyers or service providers, based on locally available information.

d. Indian Missions Abroad may extend facilitation support, as feasible, during implementation of approved activities, including liaison with local authorities, trade bodies or institutional stakeholders.

e. Indian Missions Abroad may provide general guidance on localisation aspects such as branding norms, visibility practices and suitability of locations, consistent with local laws and practices.

ANNEXURE-IV to the TRADE NOTICE

APPLICATION PROCESS FOR FLOW

1. Submission of Proposals

a. Proposals shall be submitted in the prescribed format as specified below

b. Proposals should clearly specify objectives, target markets, beneficiaries, implementation arrangements, estimated costs and measurable outcomes.

Proposal Format for Application

Declaration

I/We hereby declare and certify that, as on the date of submission of this application:

1. The applicant entity is not under investigation, charged, prosecuted, debarred, or blacklisted under the Foreign Trade (Development and Regulation) Act, 1992, or under any other applicable law relating to international trade, including the Customs Act, 1962; the Central Excise Act, 1944; the Foreign Exchange Management Act, 1999; and the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974, as amended from time to time. The applicant entity has no outstanding penalties or dues under the aforesaid Acts. Any material change in such status shall be promptly disclosed, failing which the application may be rendered ineligible and appropriate action may be initiated.

2. Neither the registered office nor the head office, nor any branch, unit, or division of the applicant entity, has been declared a defaulter or otherwise rendered ineligible to undertake import or export activities under the Foreign Trade Policy or any provision thereof.

3. I/We undertake to abide by the provisions of the Foreign Trade (Development and Regulation) Act, 1992, the Rules and Orders framed thereunder, the Foreign Trade Policy, the Handbook of Procedures, as amended from time to time.

4. I/We understand that if any information furnished in this application is found to be incorrect, false, or misleading, the applicant shall be liable to penal action or such other consequences as may be prescribed under law.

5. I/We declare that the particulars and statements furnished in this application are true and correct to the best of my/our knowledge and belief and that no material information has been concealed or withheld at the time of final submission of accounts, I shall furnish a duly signed Certificate of Disclosure of Interest certifying that no conflict of interest existed in relation to any contracts or engagements funded under this initiative and that all procurements were undertaken in compliance with applicable Government financial and procurement norms. The assistance sought under FLOW has not been availed or applied for under any other scheme of the Government of India or State Government for the same activity.

6. I hereby certify that I am duly authorised to verify and sign this declaration in accordance with paragraph 11.06 of the Foreign Trade Policy.

Proposal Documentation Checklist

• Detailed project plan (location, size, cost, operational model)
• Partnership MoU, if applicable
• List of entities IEC-wise (if available)
• Warehousing strategy (target countries and product groups, with rationale)
• Need for warehousing support and anticipated uptick of the product group under consideration
• Partnership details with EPCs and logistics service providers
• Cost estimation and cost break up (leasing cost, operational cost, other)
• Proof of prior experience of conducting similar projects
• List of existing facilities in the target region (leased/owned/partnered)
• Leasing agreement with the concerned party and details of the partner
• Details of additional sources of funding including other Government sources
• Status of local licences and other compliances required (host country regulatory approvals/permits)
• Quarterly monitoring plan
• Other documents as per requirement

Format for Utilization Certificate

Name of the Scheme: Export Promotion Mission (EPM) – NIRYAT DISHA – FLOW Name of Implementing Agency:___________________________
Sanction Order No. & Date:

Certified that out of ₹______________ (Rupees __________________________  only) sanctioned during the financial year ______________  in favour of the above-mentioned
implementing agency under the Export Promotion Mission (EPM), a sum of ₹__________ (Rupees___________________________ only) has been utilised for the purpose for which it was sanctioned, in accordance with the terms and conditions of the sanction order.

Unspent Balance Details

The unspent balance of ₹__________ has:

• Eli been adjusted against future releases with approval; or
• Eli been surrendered / refunded to the Government vide challan No. dated______ ; or

• Eli is nil.

Further Certified that:

1. The expenditure incurred has been verified from the books of accounts, which are maintained properly and are subject to audit.

2. The funds have been utilised only for approved and admissible activities under the scheme.

3. No part of the grant has been diverted for any purpose other than that for which it was sanctioned.

4. The same expenditure has not been claimed or reimbursed under any other scheme of the Government of India or State Government.

5. The assets (if any) created out of the grant shall be governed by the terms and conditions of the sanction and relevant Government rules.

Certified by:____________________

Signature: ____________________

Name: ____________________

Designation: ____________________

Name of Implementing Agency: ____________________

Date: ____________________

Place: ____________________

Countersigned by

(Chartered Accountant / Auditor / Head of Entity, as applicable)

Signature:____________________

Name: ____________________

Registration No. (if applicable): ____________________

UIN No:____________________