CARGOCONNECT-APRIL2026 - Flipbook - Page 12
T H E TA L K
LIFTing India’s
Hinterland to
Global Markets
I
ndia’s export ambitions
increasingly hinge on the
performance of its Micro,
Small and Medium Enterprises (MSMEs). While
these enterprises contribute signi昀椀cantly to manufacturing diversity, employment, and innovation,
a persistent structural challenge
has limited their full participation
in global trade—logistics cost
asymmetry. MSMEs located in
remote and hinterland districts
frequently face disproportionately high freight costs and weak
inland connectivity, making their
products less competitive despite
strong global demand.
To address this structural
imbalance, the Government of
India has introduced Logistics
Interventions for Freight &
The LIFT scheme has been introduced
initially on a pilot basis, allowing
policymakers to assess its effectiveness,
adoption levels, and operational challenges
before scaling it further. Stakeholders
have been invited to provide feedback on
operational guidelines, which will inform
future refinements.
12 | CARGOCONNECT APRIL 2026
Transport (LIFT) under the
Export Promotion Mission (EPM)
– NIRYAT DISHA. Designed as
a targeted logistics support
mechanism, the scheme seeks
to reduce freight cost disadvantages and enable exporters from
geographically distant regions
to compete more e昀昀ectively in
international markets.
Correcting a Structural
Export Constraint
India’s logistics geography has
historically favoured exporters
located near ports, industrial corridors, and established logistics
clusters. For MSMEs operating in
inland districts, the cost of transporting goods to export gateways,
whether Inland Container Depots
(ICDs), Container Freight Stations
(CFSs), sea ports, or Air Cargo
Complexes (ACCs), often erodes
If implemented efficiently and
widely adopted by eligible exporters,
LIFT could represent an important
step toward reducing regional
disparities in export participation
and integrating India’s hinterland
more deeply into global trade
networks.
price competitiveness.
Many of these enterprises
produce agricultural products,
handicrafts, textiles, processed
foods, and specialty regional
goods that possess strong export
potential. However, high inland
freight costs, limited multimodal
infrastructure, and long transport
distances have restricted their
ability to scale globally.
The LIFT initiative addresses
this imbalance directly by partially reimbursing inland freight
expenditure, thereby reducing
the logistical disadvantage faced
by exporters in remote and lowexport-intensity districts.
Structure of Financial Support
The assistance under LIFT is
designed as a freight cost reimbursement mechanism, ensuring
that exporters receive direct
In doing so, the initiative
moves beyond infrastructure
development alone and directly
addresses one of the most
practical barriers facing MSME
exporters: the cost of reaching
global markets from where
they operate.
