30 percent reimbursement of the eligible freight cost for MSME exporters in remote and low export intensity districts
India’s export ecosystem has long faced a structural imbalance. MSMEs located in remote and hinterland regions often produce high quality, globally relevant products, but struggle to compete because of high logistics and inland freight costs.
To address this gap, the Government has introduced Logistics Interventions for Freight and Transport (LIFT) under the Export Promotion Mission (EPM) – NIRYAT DISHA. This initiative is a focused support mechanism for MSMEs in notified districts, aimed at reducing freight burden and improving export competitiveness.
This article explains the scheme in a practical and structured manner for exporters, consultants, and trade stakeholders.
1. Objective and Policy Rationale
The LIFT initiative is designed to support MSMEs situated in remote and low export intensity districts by partially reimbursing eligible freight and logistics costs.
Why this scheme is important
MSMEs in these regions typically face:
- Geographical disadvantages
- High inland transportation cost to reach ports and logistics hubs
- Limited logistics infrastructure and connectivity
- Cost disadvantages vis a vis exporters located near ports and industrial corridors
Core objective
The scheme seeks to create a more level playing field by reducing freight cost pressure and enabling exporters from hinterland and difficult terrain regions to participate more effectively in international markets.
2. Nature of Assistance under LIFT
The support under LIFT is in the nature of freight cost reimbursement, subject to specific limits and conditions.
Key benefits
- 30 percent reimbursement of eligible freight cost
- Freight cost considered for reimbursement is capped at 20 percent of FOB value
- Maximum support of ₹20 lakh per IEC per financial year
Effective date
- Applicable only for transport services availed on or after 20 February 2026
Minimum distance condition
- The transport movement must cover a minimum eligible distance of 200 km
Pilot basis implementation
The scheme is being implemented on a pilot basis, which indicates that performance, usage trends, and operational challenges may be reviewed and refined over time.
3. Who Can Apply? Eligible Beneficiaries
The scheme is available to MSMEs, subject to location based and compliance based conditions.
Eligibility conditions
The MSME exporter must:
- Be located in a notified district
- Hold a valid Importer Exporter Code (IEC)
- Have a valid Udyam Registration
- Not be listed in the Denied Entity List
Notified districts covered
The scheme covers all districts of the following States and Union Territories:
- Assam
- Arunachal Pradesh
- Himachal Pradesh
- Jammu and Kashmir
- Ladakh
- Manipur
- Meghalaya
- Mizoram
- Nagaland
- Sikkim
- Tripura
- Uttarakhand
- Bihar
4. Eligible Products under LIFT
The scheme is product specific and applies to notified goods, particularly those with strong export potential from the covered regions.
Broad product categories covered
The notified list includes products in categories such as:
- Agriculture and horticulture
- Processed food products
- Handicrafts
- Textiles and traditional specialty goods
Product code reference
Eligible products are to be identified as per Annexure VI (notified ITC HS codes).
Exporters should ensure that the exported item exactly matches the notified code before planning a claim.
5. Covered Logistics Movements and Modes
The scheme supports inland freight movement from the MSME’s location to key export logistics points.
Covered destination points
Freight movement from the MSME premises to the following is eligible:
- Inland Container Depots (ICDs)
- Container Freight Stations (CFS)
- Sea Ports
- Air Cargo Complexes
Conclusion
The LIFT initiative under EPM – NIRYAT DISHA is a targeted and strategically designed logistics support mechanism for MSME exporters in remote and low export intensity districts. By reimbursing a portion of eligible freight cost, the scheme directly addresses one of the most significant barriers faced by hinterland exporters.
If implemented effectively and used proactively by eligible MSMEs, LIFT can strengthen regional export participation, support local product clusters, and enhance India’s integration into global value chains.
