FLOW Scheme 2026 to boost Overseas Warehousing & Export

DGFT Launches FLOW Scheme 2026 to Boost Overseas Warehousing & Export Fulfilment

On 20 February 2026, the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, issued Trade Notice No. 28/2025-26 announcing the launch of FLOW – Facilitating Logistics, Overseas Warehousing & Fulfilment under the Export Promotion Mission (EPM) – NIRYAT DISHA.

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

🎯 Objective of the FLOW Scheme: FLOW is designed to support Indian MSMEs engaged in international value chains by helping them overcome overseas logistics challenges such as:

• Lack of foreign warehousing facilities
• High last-mile delivery costs
• Slow order fulfilment
• Limited overseas customer service infrastructure

The goal is simple:
✔ Improve delivery efficiency
✔ Reduce logistics cost
✔ Increase responsiveness in global markets

🌍 What Activities Are Covered?

FLOW provides financial support for overseas market infrastructure, including:

1️⃣ Overseas Warehousing Facilities: Storage, distribution, and returns processing centres outside India (owned, leased, or third-party).

2️⃣ Overseas Fulfilment Arrangements: Local storage, last-mile delivery, returns management, and customer service in foreign markets.

3️⃣ Display or Market Access Facilities: Overseas product display centres for buyer interaction and showcasing Indian goods (no retail sales).

4️⃣ E-Commerce Export Hubs (ECEHs): Support for export-linked warehousing and fulfilment integrated with cross-border e-commerce networks. Importantly, at least 20% of annual merchandise volume must benefit Indian MSMEs.

🏢 Who Is Eligible?

Only entities incorporated in India can apply. Eligible applicants include:

• Export Promotion Councils (EPCs)
• Commodity Boards
• Logistics & Warehousing Service Providers with international operations
• Industry Associations / Export Clusters
• Central & State Government Organisations
• Entities recommended by Central/State Government or SEPC/DEPC

This scheme is more infrastructure-focused rather than individual MSME reimbursement (unlike LIFT).

💰 Level of Financial Assistance

FLOW provides 30% support of project cost, subject to ceilings:

Key Conditions:

• Support limited to lease/rental & operational expenses
• Capital expenditure not covered
• Assistance available for maximum 3 years

📝 Application Process

Proposals must be submitted online in prescribed format including:

• Project objectives & target markets
• Cost break-up (leasing, operational cost)
• Financing pattern
• Implementation plan
• Measurable outcomes
• Sustainability strategy beyond Government support

Applications can be submitted via the notified online form (until further notice).

💳 Fund Release Mechanism

• Assistance released in instalments
• First instalment after approval
• Subsequent instalments based on milestones
• Utilisation Certificate mandatory
• Non-compliance may lead to recovery with interest

Entities must maintain proper books, audited statements, and ensure no double benefit under other schemes.

🌐 Role of Indian Missions Abroad

Indian Missions may:

• Provide inputs on local market conditions
• Assist in due diligence of overseas partners
• Support regulatory and localisation guidance
• Facilitate coordination with local authorities

This ensures projects are commercially viable and reputationally safe for India.

🏛 Governance & Oversight

A Sub-Committee on Warehousing and Logistics will oversee implementation, recommend corrective measures, and monitor outcomes.

The Export Promotion Mission (EPM) Division at DGFT HQ will manage operationalisation and fund disbursement.

📢 Stakeholder Feedback

Stakeholders may submit feedback within 30 days of the Trade Notice via email to:
epm-dgft@gov.in

🔎 Why FLOW Is Important

With global trade increasingly driven by e-commerce, faster deliveries, and localized distribution networks, Indian exporters must maintain overseas inventory and fulfilment capability.

FLOW bridges this gap by:

• Enabling Indian products to be stored closer to buyers
• Reducing delivery time
• Improving competitiveness
• Strengthening India’s global export footprint

Together with LIFT (which supports domestic freight), FLOW creates a more complete logistics ecosystem for Indian exporters.

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