DGFT Launches LIFT Scheme 2026 – NIRYAT DISHA

“DGFT Launches LIFT Scheme 2026 – NIRYAT DISHA: 30% Freight Reimbursement for MSME Exporters from Hinterland Districts”

On 20 February 2026, the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, issued Trade Notice No. 29/2025-26 announcing the launch of Logistics Interventions for Freight & Transport (LIFT) under the Export Promotion Mission (EPM) – NIRYAT DISHA.

The scheme is effective immediately and will initially operate on a pilot basis.

🎯 Objective of the LIFT Scheme: The LIFT initiative is designed to support MSMEs engaged in international value chains, particularly those operating from hinterland and low-export-intensity districts.

Many MSMEs located far from ports face:

• High inland freight costs
• Poor connectivity
• Regional logistics disadvantages

LIFT aims to:

• Reduce freight and logistics expenses
• Offset structural inefficiencies in inland connectivity
• Create a level playing field for exporters from remote regions

📍 Eligible Districts: The scheme applies to exports originating from specified districts in the following States/UTs:

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

(Complete district details are provided in Annexure-V of the Trade Notice.)

📦 Eligible Products: Support is available only for notified products, including:

• Walnuts, Pineapple, Mandarin oranges, Lemons
• Kiwi, Litchi, Makhana
• Large cardamom, Ginger, Saffron, Mixed spices
• Bakery products, Jams, Pickles
• Agarbatti (incense sticks), Bamboo articles
• Silk textiles (including Muga & Ryndia silk)
• Kullu & Pashmina shawls
• Apples (fresh & processed)
• King Chilli / Bhut Jolokia
• Cinnamon
• Millets & cereals
• Wooden handicrafts
• Handmade carpets & floor coverings
• Knitted socks & gloves

(Refer Annexure-VI for ITC(HS) codes.)

💰 Nature & Extent of Assistance

Under LIFT, eligible MSMEs will receive:

• 30% reimbursement of eligible freight expenditure (excluding taxes)
• Freight value capped at 20% of FOB value
• Maximum benefit: ₹20 lakh per IEC per financial year

Important conditions:

• Distance from origin to ICD/CFS/ACC/Seaport must be minimum 200 km
• Support available only for services availed on or after 20 February 2026
• Not applicable to deemed exports or SEZ exports
• Uniform assistance across Micro, Small & Medium enterprises

For FY 2025–26, the annual cap of ₹20 lakh applies in full (no pro-rata adjustment).

🧾 Eligibility Conditions

To qualify, an applicant must:

• Be a registered MSME with valid Udyam Registration
• Hold an active Importer Exporter Code (IEC)
• Not be listed in the Denied Entity List (DEL)

If an MSME moves to a higher classification during the year, it remains eligible for 3 years post reclassification (subject to conditions).

🖥️ Two-Stage Online Application Process

The scheme follows a two-stage mechanism via the DGFT portal:

Stage 1: Intent-to-Claim (IC)

• Filed before availing transportation services
• Generates a Unique Identification Number (UIN)
• Valid till end of financial year or 12 months (whichever earlier)

Stage 2: Reimbursement Claim (RC): Filed after export completion and shipping bill generation.

Mandatory documents:

• Transport invoice
• Proof of payment
• Shipping Bill
• E-Way Bill
• Self-declaration (no double benefit claimed)

Claims must be filed quarterly with the jurisdictional DGFT Regional Authority.

Reimbursement will be credited directly to the bank account linked with the IEC.

🏛 Governance & Oversight: A Sub-Committee on Warehousing and Logistics has been constituted to:

• Recommend eligible districts and products
• Suggest reimbursement rates and annual ceilings
• Address procedural and policy bottlenecks
• Develop monitoring and performance metrics

The Export Promotion Mission (EPM) Division at DGFT HQ will oversee implementation.

📢 Stakeholder Feedback Invited: As per Paragraph 1.07A of the Foreign Trade Policy 2023, stakeholders may submit feedback within 30 days from the date of Trade Notice issuance via email to:
epm-dgft@gov.in

🔎 Why This Matters: For MSMEs in remote and geographically disadvantaged areas, freight cost is often the biggest barrier to global competitiveness.

The LIFT scheme is a targeted attempt to:

• Encourage exports from low-intensity districts
• Boost agricultural, handicraft, and specialty product exports
• Integrate hinterland MSMEs into global value chains

If implemented effectively, LIFT could significantly improve export participation from India’s remote regions and strengthen inclusive trade growth.

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