LIFT Scheme Launched: Freight Reimbursement for MSME Exporters from Hinterland Districts

The Government of India has launched the Logistics Interventions for Freight & Transport (LIFT) scheme under the Export Promotion Mission (NIRYAT DISHA), effective 20 February 2026, to support MSMEs in low export-intensity and hinterland districts. The scheme provides partial reimbursement of freight costs to offset geographical disadvantages affecting exporters from identified districts, including Northeastern states, hill regions, and select other states. Eligible MSMEs with valid IEC and Udyam registration can claim up to 30% reimbursement of freight costs (capped at 20% of FOB value), subject to an annual ceiling of ₹20 lakh per IEC. Support applies only to notified products and shipments exceeding 200 km to ICDs, ports, or air cargo complexes, excluding deemed exports and SEZ supplies. Claims follow a two-stage online process through DGFT, involving Intent-to-Claim and Reimbursement Claim filings. Implemented initially on a pilot basis, the scheme aims to improve export competitiveness, liquidity, and market access for MSMEs operating in remote regions.

Government of India
Ministry of Commerce & Industry
Department of Commerce
Vanijya Bhawan, New Delhi

Trade Notice No. 29/2025-26 – DGFT | Dated: 20^th February 2026

Subject: Launch of Facilitating Logistics Interventions for Freight & Transport (LIFT) under Export Promotion Mission (EPM) — NIRYAT DISHA— reg.

The Support for Logistics Interventions for Freight & Transport (LIFT) under Export Promotion Mission (EPM) — NIRYAT DISHA is hereby implemented prospectively with immediate effect.

2. The intervention aims to address geographical disadvantages and logistics gaps affecting MSMEs in low export intensity areas. Under LIFT, the proposed support focuses on lowering freight and logistics costs stemming from the locational challenges faced by MSMEs in these regions.

3. 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-Ill.

4. 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.

5. 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. 01/02/73/AM-26/EPM)

ANNEXURE-I to the TRADE NOTICE

POLICY FRAMEWORK

FOR LOGISTICS INTERVENTIONS FOR FREIGHT & TRANSPORT (LIFT)

1. Objective

a. The objective of the initiative is to provide support to MSMEs (involved in international value chains) equitable access to export opportunities by mitigating geographical disadvantages and addressing regional logistics gaps faced while operating from hinterland areas.

b. Assistance under this initiative shall be directed towards offsetting structural inefficiencies in inland connectivity affecting remote or hinterland regions, thereby creating a level playing field.

c. The support extended under this initiative shall reduce freight and logistics costs arising from locational disadvantages faced by hinterland MSMEs.

2. Scope and Coverage

a. The support under this initiative shall be limited to partial reimbursement of freight cost incurred by MSMEs for exporting notified products form identified districts.

b. The support shall be available exclusively to eligible MSMEs and shall be subject to such ceilings, conditions, and safeguards as may be notified.

c. The detailed 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

FOR LOGISTICS INTERVENTIONS FOR FREIGHT & TRANSPORT (LIFT)

1. Eligibility, Scope and Coverage

a. Exports originating from the districts as per the list under Annexure-V shall be the eligible for support under the Intervention.

b. MSMEs from the districts specified holding an active Importer-Exporter Code (IEC) (not in the Denied Entity List (DEL) and a valid MSME Udyam Registration Number shall be eligible to for support under this initiative.

c. Partial reimbursement of freight cost incurred shall be provided for:

i. Shipment of exports from MSME premises to Inland Container Depots (ICDs), Container Freight Stations (CFS), Sea Ports, Air Cargo Complex (ACC), through rail or road.

ii. Additionally, shipment through air shall also be supported for districts from Northeastern regions.

d. The list of eligible products is notified under the Annexure-VI.

e. Given support shall be admissible only where the distance between the origin and destination is not less than 200 km for freight movements to an ICD, CFS, ACC or seaport.

2. Nature and Extent of Assistance

a. Assistance shall be provided in the form of partial reimbursement of the actual freight cost (excluding applicable taxes) or the notified cost, whichever is lower.

b. The level of assistance shall be uniform across all MSMEs (involved in international value chains), irrespective of classification as Micro, Small, or Medium enterprises. The maximum cumulative reimbursement admissible shall be Z20 lakh per IEC per financial year.

c. Reimbursement shall be restricted to 30% of the eligible freight expenditure, excluding applicable taxes.

d. To calculate eligible freight expenditure, the freight value shall be capped at 20% of the FOB value of the goods.

e. Given Support shall not be admissible in respect of deemed exports, as defined under Chapter 7 of the Foreign Trade Policy or for exports to Special Economic Zones (SEZ).

f. Revised reimbursement rates, as notified from time to time, shall be applicable only to eligible transportation and logistics on or after the date of such notification.

g. Eligible Entities graduating out of their existing MSME category during the financial year, due to an upward change in investment or turnover, shall continue to remain eligible for support for a period of three years from the date of such re-classification, in accordance with Ministry of MSME Notification S.O. 4926(E) dated 18.10.2022, and subject to fulfilment of all other prescribed conditions.

h. For FY 2025-26, the annual ceiling on support shall apply in full and shall not be subject to pro-rata adjustment, irrespective of the date of sanction during this financial year.

i. Given Support shall be admissible only in respect of transportation and logistics services availed on or after 20^th February 2026.

3. Submission of Claims

a. Eligible MSME shall follow a two-stage online process for availing support under LIFT.

b. Stage I — Intent-to-Claim (IC): The exporter shall file an online Intent-to-Claim prior to obtaining transportation services for transporting their exports. Each declaration of intent shall remain valid until the end of the financial year or for 12 months from the date of submission, whichever is earlier.

c. Stage II — Reimbursement Claim (RC): Following completion of export and generation of shipping bill, the exporter shall file the Reimbursement Claim, tagging the relevant IC(s) and enclosing:

i. Copy of the Invoices for transport

ii. Invoice and proof of payment

iii. A self-declaration confirming that no benefit has been claimed or shall be claimed for the same expenditure under any other scheme of the Central or State Government or any other third-party assistance.

d. The Intent-to-Claim shall remain valid for submission of the Reimbursement Claim for a period of six months from the date of issuance.

4. Processing of Claims

a. All valid claims shall be filed on a quarterly basis with the jurisdictional DGFT Regional Authority through the online system.

b. Reimbursement support shall be made directly to the bank account specified in the IEC.

c. The application for availing benefits should clearly mention the description of the products ensuring it is aligned with the list of identified products as per Annexure-VI.

d. The following mandatory list of attachments shall be included with application for continuous tracking:

i. Copy of invoice for shipment transportation

ii. Proof of payment

iii. Shipping Bill

iv. E-Way Bill

ANNEXURE-Ill to the TRADE NOTICE

GOVERNANCE STRUCTURE

FOR LOGISTICS INTERVENTIONS FOR FREIGHT & TRANSPORT (LIFT)

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

e. The Sub-Committee shall, inter alia, recommend the following:

• Eligible districts.
• Eligible products.
• Applicable rates of reimbursement; and
• Annual ceiling on admissible benefits.

The current lists of eligible districts and eligible products are set out in Annexure-V and Annexure-VI, respectively.

2. Operationalisation and Implementation of LIFT

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

ANNEXURE-IV to the TRADE NOTICE

Application Procedure for Logistics Interventions for Freight & Transport (LIFT)

a. Applicants shall submit an online application indicating their intent to avail reimbursement on the costs incurred for availing eligible transportation and logistics services. Upon submission, a unique UIN number shall be generated.

b. Each declaration of intent shall remain valid until the end of the financial year or for 12 months from the date of submission, whichever is earlier.

c. After availing the eligible transportation and logistics services, applicants shall apply for claim for reimbursement on the DGFT portal referring the UIN.

d. Respective jurisdictional DGFT RAs shall examine and approve the claim and disburse the reimbursement amount directly to the applicant’s bank account linked to the IEC number.

ANNEXURE – V to the TRADE NOTICE

List of Eligible Districts

ANNEXURE – VI

List of Eligible Products