The DGFT FLOW Scheme provides 30% financial assistance for approved overseas warehousing, fulfilment, and e-commerce export infrastructure projects, subject to specified ceilings and a three-year limit.
The Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industry, introduced the Facilitating Logistics, Overseas Warehousing & Fulfilment (FLOW) Scheme under the Export Promotion Mission (EPM) – NIRYAT DISHA, effective 20 February 2026.
Unlike TRACE or LIFT, FLOW is a project-based institutional support scheme, not a transaction-level reimbursement mechanism.
Objective of the FLOW Scheme
The FLOW Scheme aims to:
- Reduce logistics bottlenecks in overseas markets
- Improve delivery timelines and distribution efficiency
- Lower warehousing and fulfilment costs abroad
- Enable structured overseas distribution infrastructure
- Strengthen India’s position in cross-border e-commerce
The scheme operates on a pilot basis and focuses on long-term export infrastructure creation.
Who Can Apply Under FLOW?
FLOW is designed for institutional or project-level applicants capable of establishing or managing overseas facilities. Eligible entities include:
- Export Promotion Councils (EPCs)
- Commodity Boards
- Logistics, warehousing, and fulfilment operators with international presence
- Industry associations and exporter clusters
- Central or State Government organisations
- Entities recommended by Central or State Government
- Entities recommended by SEPC or DEPC
Only entities incorporated in India are eligible.
Types of Projects Supported
The FLOW Scheme supports four structured categories of overseas interventions:
1. Overseas Warehousing Facilities
Eligible interventions include:
- Storage facilities located abroad
- Leased or third-party warehousing arrangements
- Distribution and returns-processing infrastructure
These facilities reduce delivery lead times and improve market responsiveness.
2. Overseas Fulfilment Arrangements
Support may cover:
- Last-mile delivery systems
- Customer support infrastructure
- Returns management mechanisms
- Pay-per-use fulfilment models
- Drop-shipping and ready-to-ship platforms
These arrangements are particularly relevant for cross-border e-commerce exporters and MSME aggregators.
3. Display and Market Access Facilities
Eligible support includes:
- Overseas display centres
- Sampling and buyer interaction hubs
- Non-retail showcase facilities
These initiatives enhance brand visibility and structured buyer engagement.
4. E-Commerce Export Hubs (ECEHs)
Assistance may be extended for:
- Export-linked overseas warehousing
- Cross-border e-commerce integration infrastructure
- Fulfilment, packaging, and facilitation centres
ECEHs are intended to create scalable digital export ecosystems for MSMEs.
Financial Assistance Structure
Financial assistance is capped at 30% of approved operational project cost, subject to category-specific ceilings and a maximum support period of three years.
Assistance Ceilings
- Overseas Warehousing: Up to ₹10 crore per year
- Overseas Fulfilment: Up to ₹5 lakh per month
- Display / Market Access Facilities: Up to ₹5 crore per year
- E-Commerce Export Hubs: Up to ₹10 crore per year
Core Financial Conditions
- Support limited to lease, rental, and operational expenditure
- Capital expenditure is excluded
- Maximum support duration: 3 years
- Minimum 20% of annual merchandise volume must benefit Indian MSMEs
Applicants must segregate operational expenses from capital costs and ensure transparent allocation.
Fund Release and Monitoring
Assistance is released in phased instalments:
- Initial instalment upon project approval
- Subsequent instalments linked to milestone achievement
- Submission of Utilisation Certificates
- Performance monitoring and review
Non-compliance with milestones may result in suspension, recovery of funds, or debarment.
Role of Indian Missions Abroad
Indian Missions may support FLOW projects through:
- Market intelligence inputs
- Preliminary due diligence
- Regulatory liaison support
- Validation of overseas partners
- Localisation and compliance guidance
Early engagement strengthens proposal credibility and regulatory preparedness.
Core Compliance Requirements
Applicants must ensure:
- Audited books of account maintained
- No duplication of benefits under other schemes
- Full compliance with host-country laws
- Due diligence of overseas partners
- Timely submission of utilisation certificates
- Clear sustainability model beyond the three-year support period
Governance, documentation discipline, and milestone tracking are critical.
FLOW Scheme Implementation Checklist
Institutions should adopt structured internal controls:
1. Entity Eligibility
- Incorporated in India
- Falls within eligible applicant category
- No blacklisting or adverse regulatory proceedings
- Audited financial statements available
- No material statutory dues
2. Project Structuring
- Project falls under eligible intervention category
- Expenditure restricted to operational components
- Capital expenditure excluded
- MSME participation threshold (20%) ensured
- Sustainability plan documented
- Host-country regulatory requirements identified
3. Financial Planning
- Detailed cost break-up prepared
- 30% assistance computed accurately
- Ceiling limits respected
- Own contribution clearly identified
- Funding sources disclosed
- No duplication of government benefits
4. Proposal Documentation
- Comprehensive project report prepared
- Overseas partnerships documented
- Target markets identified
- Beneficiary MSME list compiled
- Leasing terms documented
- Monitoring and reporting framework defined
5. Post-Approval Controls
- Milestone schedule formalised
- Instalment tracking mechanism implemented
- Utilisation certificate process institutionalised
- Audit-ready documentation maintained
- Quarterly performance reporting system established
Key Risk Areas
Entities should monitor:
- Inclusion of ineligible capital costs
- Failure to meet MSME participation threshold
- Delays in utilisation certificate submission
- Weak overseas partner due diligence
- Host-country regulatory non-compliance
- Absence of sustainability beyond three years
Strategic Positioning of FLOW
The FLOW Scheme is particularly suitable for:
- EPC-led overseas warehousing platforms
- Cross-border e-commerce logistics operators
- Shared MSME distribution centres
- Cluster-based export hubs
- Structured overseas market-entry facilities
FLOW is a structural competitiveness initiative focused on export infrastructure creation abroad. It is not a transactional subsidy mechanism.
Institutions planning international logistics expansion should evaluate FLOW as part of a long-term export infrastructure strategy, supported by governance controls, financial discipline, and regulatory compliance from project inception.
Source: DGFT Trade Notice 28/2025-26 dated 20/05/2026 regarding Guidelines on FLOW Scheme under EPM (30% Support for Overseas Warehousing Infrastructure)