CARGOCONNECT-APRIL2026 - Flipbook - Page 14
昀椀nancial relief against logistics
expenditure incurred during the
export process.
Key provisions of the scheme
include:
• Up to 30% reimbursement of
eligible freight costs
• Freight value considered for
reimbursement capped at 20%
of the FOB export value
• Maximum assistance of `20
lakh per Importer Exporter Code
(IEC) per 昀椀nancial year
• Applicable only for transport
services undertaken on or after
20 February 2026
• Minimum eligible inland transport distance of 200 kilometres
The reimbursement structure
ensures that support remains
proportionate to export value
while preventing excessive claims
relative to shipment economics.
Logistics Movements Covered
The LIFT scheme focuses on
the critical inland segment of
the export supply chain, which
often constitutes the largest cost
burden for hinterland exporters.
Eligible logistics movements include transportation
from MSME premises to export
logistics gateways, speci昀椀cally:
• Inland Container Depots (ICDs)
• Container Freight Stations
(CFSs)
• Sea ports
• Air Cargo Complexes (ACCs)
Freight movements via road
and rail are covered across
eligible regions. Air freight
shipments are also permitted
for certain regions, particularly
from the northeastern states
where air cargo often serves as
a primary export channel due
to terrain constraints.
Deemed exports and shipments routed through Special
Economic Zones (SEZs) are
excluded from the scheme.
Digital Claim and
Monitoring Mechanism
To ensure transparency and
operational e昀케ciency, the scheme
incorporates a structured twostage digital claim process.
Intent-to-Claim Submission:
Exporters notify their planned
claim through an online portal
after completing an eligible
export transaction.
14 | CARGOCONNECT APRIL 2026
QUICKFACTS
Reimbursement Claim Filing:
Supporting documents, freight
invoices, export documentation,
and shipment records are submitted for veri昀椀cation.
Claims are 昀椀led quarterly and
processed by the jurisdictional
DGFT office. Once approved,
reimbursement is transferred
directly to the exporter’s IEClinked bank account.
Implementation oversight
will be provided by a DGFT
sub-committee, which will periodically review eligible districts,
product categories, reimbursement structures, and operational
outcomes.
Positioning LIFT within
India’s Export Promotion
Strategy
The LIFT initiative forms part of
the broader `25,060 crore EPM,
which aims to strengthen India’s
global trade ecosystem through a
combination of 昀椀nancial support,
regulatory facilitation, and logistics infrastructure development.
Alongside freight reimbursement, the mission introduces
several complementary interventions designed to support MSME
exporters, including:
• Interest subvention of 2.75%
on export factoring
• Direct e-commerce export
credit facility up to `50 lakh
with 90% guarantee coverage
• Overseas inventory credit
facility up to `5 crore
• 60–75% reimbursement for
— Export Cost
Reimbursement
LIFT offers up to 30%
reimbursement on
eligible inland freight
costs for MSME
exporters.
— Financial
Claim Ceiling
Maximum 昀椀nancial
assistance is capped
at ₹20 lakh per
Importer Exporter
Code each year.
— Minimum
Distance
Requirement
Eligibility requires
a minimum inland
transport distance
of 200 kilometres to
the export gateway.
— Shipment
Value Limitation
Reimbursable freight
value cannot exceed
20% of the total Free
on Board export
value.
— Mission Budget
Allocation
LIFT is part of the
broader ₹25,060
crore Export
Promotion Mission
for global trade.
testing, inspection, and certi昀椀cation under the TRACE initiative
• Support for overseas warehousing and ful昀椀lment infrastructure
through the FLOW programme
Together, these measures aim
to reduce cost of capital, improve
market access, enhance compliance readiness, and strengthen
global distribution capabilities
for Indian exporters.
Strategic Signi昀椀cance
for Regional Export
Development
Beyond immediate 昀椀nancial relief,
the long-term importance of LIFT
lies in its potential to activate
export ecosystems in geographically underserved regions.
By lowering inland logistics
costs, the scheme can help:
• Expand participation of hinterland MSMEs in global value
chains
• Strengthen regional product
clusters
• Encourage formalisation and
export orientation among small
manufacturers
• Improve utilisation of ICDs
and multimodal logistics infrastructure
• Diversify India’s export base
beyond traditional coastal clusters
For sectors such as handicrafts, specialty agriculture, textiles, and processed foods—many
of which originate in remote
regions—the scheme could play
a crucial role in scaling international market access.
