Facilitating Logistics, Overseas Warehousing & Fulfilment (FLOW): A Game Changer for Indian MSMEs

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Dated: 21.02.2026

Facilitating Logistics, Overseas Warehousing & Fulfilment (FLOW): A Game Changer for Indian MSMEs

The Government of India has launched a groundbreaking initiative under the Export Promotion Mission (EPM) – NIRYAT DISHA, titled Facilitating Logistics, Overseas Warehousing & Fulfilment (FLOW). This initiative, announced through Trade Notice No. 28/2025-26 dated 20th February 2026, aims to empower Indian Micro, Small, and Medium Enterprises (MSMEs) by addressing logistics challenges and enhancing their global market access.

What is FLOW?

FLOW is a forward-looking intervention designed to mitigate logistics-related constraints faced by MSMEs involved in international trade. It focuses on improving delivery efficiency, reducing logistics costs, and enhancing market responsiveness. By providing support for overseas logistics, warehousing, fulfilment, and market-facing infrastructure, FLOW aims to create a robust framework for Indian exporters to thrive in foreign markets.

Key Objectives of FLOW

Addressing Logistics Challenges: FLOW seeks to alleviate the logistical hurdles that MSMEs face in accessing overseas markets, such as storage, distribution, fulfilment, and customer service infrastructure.
Enhancing Efficiency: The initiative aims to improve delivery efficiency, reduce logistics costs, and enable faster response to market demands.
Supporting MSMEs: A minimum of 20% of the annual merchandise volumes under approved projects must be allocated to Indian MSMEs, ensuring their active participation in global trade.

Scope and Coverage 

Under FLOW, eligible entities can receive assistance for activities related to:

Overseas Warehousing Facilities: Support for storage, returns processing, and distribution of goods in foreign markets.
Overseas Fulfilment Arrangements: Assistance for local storage, last-mile delivery, customer service, and returns management.
Display or Market Access Facilities: Support for physical overseas facilities used for product display, sampling, and buyer interaction.
E-Commerce Export Hubs (ECEHs): Support for export-linked warehousing, fulfilment, and facilitation activities integrated with overseas distribution networks for cross-border e-commerce exports.

Eligibility Criteria

To qualify for FLOW assistance, entities must meet the following criteria:

Be incorporated in India under applicable Indian laws.
Eligible entities include Export Promotion Councils (EPCs), Commodity Boards, logistics service providers with international operations, industry associations, government organizations, and entities recommended by Central or State Governments.
Projects must ensure that at least 20% of annual merchandise volumes are allocated to Indian MSMEs.

Nature and Level of Assistance 

The financial assistance under FLOW is designed to cover lease or rental charges, common facility costs, and operational expenses directly related to the approved project. The support excludes capital expenditure and is available for a maximum period of three years. The level of assistance is capped as follows:

Overseas Warehousing Facility: 30% of the proposal cost, up to ₹10 Crores per year.
Overseas Fulfilment Arrangements: 30% of the proposal cost, up to ₹5 Lakhs per month.
Display or Market Access Facilities: 30% of the proposal cost, up to ₹5 Crores per year.
E-Commerce Export Hubs: 30% of the proposal cost, up to ₹10 Crores per year.

Application Process

Eligible entities can submit their proposals online through the prescribed form available at https://forms.gle/4ztM5khT1WZxJudE9. The application must include:

Detailed project plan (location, size, cost, operational model).
Partnership details and MoUs, if applicable.
Cost estimation and breakdown (leasing, operational costs, etc. ).
Proof of prior experience in similar projects.
Status of local licenses and regulatory approvals in the host country.
Quarterly monitoring plan and measurable outcomes.

Governance Structure

The FLOW initiative will be overseen by a Sub-Committee on Warehousing and Logistics, which will provide recommendations, address policy bottlenecks, and develop performance indicators. The committee will include representatives from various government departments, industry experts, and stakeholders.

Role of Indian Missions Abroad 

Indian Missions Abroad will play a crucial role in the implementation of FLOW by:

Providing inputs on local market conditions and regulatory environments.
Facilitating due diligence of overseas partners and service providers.
Offering guidance on localization aspects such as branding and visibility practices.

Feedback and Stakeholder Engagement 

The Directorate General of Foreign Trade (DGFT) has invited stakeholders to provide feedback on the guidelines within 30 days of the issuance of the Trade Notice. Comments and suggestions can be submitted via email at epm-dgft@gov.in.

Conclusion

The launch of FLOW under the Export Promotion Mission (EPM) – NIRYAT DISHA marks a significant step in empowering Indian MSMEs to compete globally. By addressing logistical challenges and providing financial assistance for overseas warehousing and fulfilment, the initiative aims to boost export efficiency, reduce costs, and enhance market responsiveness. With its focus on MSMEs and cross-border e-commerce, FLOW is set to transform India’s export landscape and strengthen its position in the global market.

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Source: DGFT

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