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If you’re an MSME exporter from the North Eastern Region or other notified hilly and geographically disadvantaged areas, the DGFT LIFT Scheme could help reduce one of your biggest export expenses—inland transportation costs.
Recently, the Directorate General of Foreign Trade (DGFT) sent an email to eligible Importer Exporter Code (IEC) holders explaining the benefits of this scheme and encouraging eligible exporters to claim financial assistance.
Here’s everything you need to know.
LIFT stands for Logistics Interventions for Freight & Transport.
It is a financial assistance scheme launched by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industry, Government of India, under the Export Promotion Mission (EPM).
The objective of the scheme is to partially reimburse inland freight and transportation costs incurred by eligible MSME exporters located in notified hilly, remote and border regions, thereby making Indian exports more competitive in international markets.
Exporters located in remote regions often spend substantially more on transporting goods to:
These additional logistics costs reduce profit margins and make Indian products more expensive in overseas markets.
To address this challenge, the Government introduced the DGFT LIFT Scheme under the Export Promotion Mission (EPM).
Its aim is simple:
Reduce export logistics costs and promote exports from geographically disadvantaged regions of India.
According to the official DGFT communication, an exporter must satisfy all the following conditions.
✅ Hold a valid Importer Exporter Code (IEC) issued by DGFT.
✅ Have a valid Udyam Registration as an MSME.
✅ Export notified eligible products covered under the scheme.
✅ The manufacturing or processing unit must be located in notified districts/states covered by the scheme.
✅ Fulfil all other conditions prescribed in the Scheme Guidelines.
Important: Merely having an IEC is not sufficient. Both the product exported and the location of the manufacturing/processing unit must qualify under the scheme.
The current pilot phase covers 28 notified product categories, mainly representing the strengths of the North Eastern Region and Himalayan States.
Note: Eligibility depends on the notified ITC (HS) Codes specified in the Scheme Guidelines. Exporters should verify that their product’s ITC (HS) code is included before filing a claim.
One of the most important eligibility requirements under the DGFT LIFT Scheme is that your exported product must fall under the notified ITC (HS) codes.
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Many exporters from Assam may naturally ask this question.
Based on the current DGFT communication, Assam Tea is not specifically listed among the 28 product categories covered under the pilot phase. Eligibility depends on the officially notified ITC (HS) codes. Exporters should check the latest scheme guidelines or contact the DGFT Regional Authority before assuming their exports qualify.
Eligible MSME exporters can benefit by:
One of the biggest clarifications provided by DGFT is that:
This is an important simplification introduced under the scheme.
You first complete your export in the normal manner.
After the export is completed and the Shipping Bill has been filed, eligible exporters can submit their reimbursement claim online.
Confirm that:
Export the goods following the normal customs and DGFT procedures.
Ensure that the Shipping Bill is filed successfully.
Keep ready:
After export, log in to the Export Promotion Mission (EPM) Portal and submit your reimbursement claim with all the required documents.
DGFT verifies:
After successful verification, financial assistance is released as per the provisions of the scheme.
If you need assistance, DGFT advises exporters to contact:
Reducing logistics costs is only one part of growing your exports. Finding genuine overseas buyers is equally important.
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The North Eastern Region has immense export potential in horticulture, spices, bamboo products, silk, handicrafts and processed food. However, exporters often face significantly higher transportation costs due to long distances from major ports.
The DGFT LIFT Scheme directly addresses this challenge by providing financial assistance to eligible MSME exporters, helping them compete more effectively in international markets.
The DGFT LIFT Scheme (Logistics Interventions for Freight & Transport) is a welcome initiative for MSME exporters in notified hilly, remote and border regions.
One of the biggest advantages of the scheme is its simplified claim process—there is no requirement to submit any prior declaration or Intent-to-Claim before export. Eligible exporters can complete their export, file the Shipping Bill, and then apply online for reimbursement through the EPM Portal.
If your business satisfies the eligibility conditions relating to IEC, Udyam Registration, notified products and notified manufacturing location, this scheme could help reduce your export logistics costs and improve your competitiveness in global markets.
Tabrez is the founder of BusinessZindagi.com and an exporter from Assam. Through BusinessZindagi, he shares practical insights on exports, MSMEs, government schemes and entrepreneurship, making complex business topics easier to understand for Indian entrepreneurs.
This article was researched with the assistance of AI and carefully reviewed using official DGFT communications and government notifications. Readers should always verify the latest guidelines before submitting any claim.
Some links on BusinessZindagi may be affiliate links. If you purchase a product or service through these links, we may earn a small commission at no extra cost to you. This helps us continue creating free business resources for entrepreneurs and exporters.
This article is for informational purposes only. Eligibility, reimbursement, notified products, ITC (HS) codes, districts and operational procedures are governed by the latest DGFT notifications and Scheme Guidelines. In case of any discrepancy, the official DGFT notification and guidelines shall prevail
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