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India launches LIFT scheme with 30% freight support

The Kashmir Chamber of Commerce & Industry has welcomed the launch of the Logistics Interventions for Freight & Transport scheme under the Export Promotion Mission NIRYAT DISHA by the Ministry of Commerce & Industry, Government of India.

According to the Chamber, the initiative is aimed at addressing logistical challenges faced by exporters in Jammu and Kashmir, particularly those operating from remote and hinterland regions. The scheme is designed to reduce freight and logistics costs and improve competitiveness in international markets.

Jammu and Kashmir has been included among the eligible regions, allowing exporters from the Union Territory to access freight cost reimbursement for notified products.

The Chamber noted that exporters in the region face higher transport costs due to landlocked geography and limited access to seaports. Goods are often transported to distant cargo terminals and ports, increasing costs and affecting market access.

KCCI stated that the introduction of the scheme follows repeated engagement with the Ministry of Commerce & Industry and the Directorate General of Foreign Trade over several years. KCCI President Javid Ahmad Tenga had also submitted a memorandum to the Ministry highlighting the need for freight support for exporters in the region.

Under the scheme, MSME exporters can receive partial reimbursement of freight costs, with support covering up to 30 per cent of freight expenditure, excluding taxes. Financial assistance is capped at ₹20 lakh (US$24,000) per Importer-Exporter Code per financial year.

The scheme applies to shipments transported from MSME premises to Inland Container Depots, Container Freight Stations, seaports, and Air Cargo Complexes. It is targeted at exporters in regions with logistical constraints related to distance and connectivity.

The Chamber indicated that the scheme will support exports of products such as walnuts, saffron, and apples, which form part of the region's export base.

KCCI stated that the initiative is expected to support participation in international trade and contribute to export sector development in Jammu and Kashmir.

Source: Greater Kashmir

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