Government Launches LIFT Initiative Under Export Promotion Mission – NIRYAT DISHA

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, Government of India, has issued Trade Notice No. 29/2025–26 dated 20 February 2026, announcing the launch of the Logistics Interventions for Freight & Transport (LIFT) initiative. The scheme has been introduced under the Export Promotion Mission (EPM) – NIRYAT DISHA, with immediate effect.

LIFT is designed as a targeted policy intervention to enhance export competitiveness of Micro, Small and Medium Enterprises (MSMEs) operating from geographically disadvantaged and low export-intensity regions of the country.

Strategic Rationale and Objectives

India’s hinterland and remote regions often face structural constraints in inland connectivity, resulting in higher freight and logistics costs. These disadvantages disproportionately impact MSMEs engaged in international value chains.

The LIFT initiative aims to:

• Mitigate geographical disadvantages affecting MSMEs in remote and hinterland areas.
• Address regional logistics gaps that increase the cost of exports.
• Create a more level playing field by partially offsetting structural inefficiencies in freight movement.
• Improve equitable access to global markets for enterprises operating outside major export hubs.

By lowering freight burdens, the intervention seeks to unlock untapped export potential in identified districts.

Scope and Coverage

1. Eligible Beneficiaries

Support under LIFT is available exclusively to:

• MSMEs holding a valid Udyam Registration Number.
• Entities possessing an active Importer-Exporter Code (IEC).
• Firms not listed in the Denied Entity List (DEL).
• MSMEs located in notified districts (listed in Annexure-V).

2. Eligible Geographical Areas

The intervention covers all districts in the following States and Union Territories:

• Assam
• Arunachal Pradesh
• Himachal Pradesh
• Jammu & Kashmir
• Ladakh
• Manipur
• Meghalaya
• Mizoram
• Nagaland
• Sikkim
• Tripura
• Uttarakhand
• Bihar

These regions have been identified due to their logistics constraints and relatively low export intensity.

3. Eligible Products

The scheme supports exports of notified products under specified ITC(HS) codes (Annexure-VI), including:

• Agricultural and horticultural products such as walnuts, pineapples, mandarin oranges, lemons, kiwi, litchi, makhana, saffron, large cardamom, cinnamon, apples, chillies (including King Chilli/Bhut Jolokia), and millets.
• Processed food items such as jams, jellies, pickles, fruit-based processed products, and bakery goods.
• Handicrafts and traditional products such as bamboo articles, wooden handicrafts, handmade carpets, agarbatti.
• Textiles and silk products including Muga silk, Ryndia textiles, Mizo silk fabric, Kullu and Pashmina shawls.
• Knitted products such as socks and gloves.

This product basket reflects a focus on region-specific, high-value, and often GI-linked goods.

Nature and Extent of Assistance

The LIFT scheme provides partial reimbursement of freight costs incurred by eligible MSMEs.

Key Features:

• Reimbursement Rate: Up to 30% of eligible freight expenditure (excluding taxes).
• Freight Cap: Freight value considered shall not exceed 20% of the FOB value of goods.
• Annual Ceiling: Maximum reimbursement of Rs.20 lakh per IEC per financial year.
• Uniform Support: Applicable uniformly across Micro, Small, and Medium enterprises.
• Distance Condition: Freight support applies only where the distance between origin and ICD/CFS/ACC/Seaport is at least 200 km.
• Air Freight: Air shipments are additionally supported for Northeastern districts.
• Exclusions:
  • Deemed exports under Chapter 7 of FTP 2023.
  • Exports to Special Economic Zones (SEZs).

Support is admissible only for transportation services availed on or after 20 February 2026.

Importantly, MSMEs that graduate to a higher category due to growth in turnover or investment will remain eligible for three years from reclassification, subject to compliance with applicable conditions.

Two-Stage Application Process

To ensure transparency and digital tracking, LIFT operates through a structured two-stage online process:

Stage I – Intent-to-Claim (IC)

• Exporter files an online declaration before availing transportation services.
• A Unique Identification Number (UIN) is generated.
• Valid until the end of the financial year or 12 months from submission, whichever is earlier.

Stage II – Reimbursement Claim (RC)

After completion of export and generation of shipping bill, the exporter must:

• File the claim online.
• Tag the relevant IC.
• Upload supporting documents:
  • Transport invoice
  • Proof of payment
  • Shipping Bill
  • E-Way Bill
  • Self-declaration confirming non-availment of benefit under any other scheme.

Claims are to be filed quarterly with the jurisdictional DGFT Regional Authority. Approved reimbursements are directly credited to the bank account linked to the IEC.

Governance Structure

A dedicated Sub-Committee on Warehousing and Logistics will oversee advisory and coordination functions under LIFT.

The Committee is chaired by the Additional DGFT (EPM Division) and includes representatives from:

• Department of Commerce
• Internal Finance Division (IFD)
• DPIIT (Logistics Division)
• Ministry of MSME
• Ministry of External Affairs (Economic Diplomacy Division)
• Ministry of Road Transport & Highways
• Directorate General of Civil Aviation
• Container Corporation of India

The Sub-Committee is empowered to:

• Recommend eligible districts and products.
• Propose reimbursement rates and annual ceilings.
• Identify procedural bottlenecks.
• Develop monitoring metrics and outcome indicators.
• Facilitate stakeholder coordination and capacity building.

Operationalisation and implementation responsibilities rest with the EPM Section at DGFT Headquarters.

Pilot Implementation and Stakeholder Consultation

The scheme will initially be implemented on a pilot basis, enabling:

• Institutional learning
• Data-driven refinements
• Policy calibration based on field feedback

In line with Paragraph 1.07A of the Foreign Trade Policy (FTP) 2023, stakeholders have been invited to submit comments and suggestions within 30 days of issuance of the Trade Notice via email to [email protected].

Conclusion

The LIFT initiative represents a calibrated, region-focused logistics support measure aimed at strengthening export ecosystems beyond India’s traditional coastal hubs. By addressing freight disadvantages faced by hinterland MSMEs, the Government seeks to deepen export penetration, diversify India’s export basket, and promote inclusive regional development under the broader Export Promotion Mission – NIRYAT DISHA.

If effectively implemented and refined through stakeholder engagement, LIFT has the potential to become a transformative instrument in reducing logistics asymmetries and enabling grassroots participation in global trade.