DGFT FLOW Scheme 2026: Overseas Warehousing Grant Rules for Exporters
A 30 percent financial subsidy is the base funding level for overseas storage and logistics under the new Facilitating Logistics, Overseas Warehousing & Fulfilment (FLOW) scheme, effective February 20, 2026, as per the Directorate General of Foreign Trade.
Authority: Directorate General of Foreign Trade, Ministry of Commerce
Reference: Trade Notice No. 28/2025-26
This article is based on Trade Notice No. 28/2025-26 governing the Export Promotion Mission (NIRYAT DISHA). In practice, export promotion divisions routinely reject reimbursement claims that bundle capital asset purchases with operational expenses, as departmental audit officers are instructed to clear only lease, rental, and common facility costs under this specific intervention.
Which entities are eligible for FLOW scheme assistance?
The scheme is strictly restricted to entities incorporated in India under applicable Indian laws. Eligible participants include recognized Export Promotion Councils (EPCs), Commodity Boards, Central and State Government organizations, and logistics service providers demonstrating active international operations.
How Much Funding Is Available Under The FLOW Scheme In 2026?
| FLOW Intervention Category | Base Funding Support | Maximum Financial Limit |
|---|---|---|
| Overseas Warehousing Facility | 30% of proposal cost | Rs 10 Crores per year |
| E-Commerce Export Hubs (ECEHs) | 30% of proposal cost | Rs 10 Crores per year |
| Display or Market Access Facilities | 30% of proposal cost | Rs 5 Crores per year |
| Overseas Fulfilment Arrangements | 30% of proposal cost | Rs 5 Lakh per month |
What is the mandatory MSME volume requirement?
Approved project operators are strictly mandated to allocate a minimum of 20 percent of their annual merchandise volumes specifically to Indian Micro, Small, and Medium Enterprises (MSMEs). Failing to meet this volumetric delivery milestone renders the entity liable for a full refund of the government advance along with applicable interest.
Lease and rental charges
Common facility maintenance costs
Direct operational expenses
Foreign-incorporated entities
Capital expenditure (property purchase)
Entities with outstanding Customs Act penalties
How To Apply For DGFT FLOW Scheme Assistance
- Access the official online application form via the Google Forms link provided in the DGFT Trade Notice.
- Submit the detailed project plan specifying the target markets, overseas location, and operational strategy.
- Upload a precise cost estimation break-up that explicitly separates leasing and operational costs from ineligible capital expenses.
- Attach the mandatory integrity declaration certifying that the entity has no outstanding dues under the Foreign Exchange Management Act or Customs Act.
- Ensure all local host-country licenses and statutory regulatory approvals are identified and documented in the proposal.
What happens after the DGFT approves the proposal?
Financial assistance is disbursed in two or more equal instalments. The first instalment acts as an advance post-approval, while subsequent releases strictly depend on the submission of a Chartered Accountant-certified Utilization Certificate and physical progress reports detailing the exact use of previous funds.
Frequently Asked Questions
What is the maximum assistance for Overseas Warehousing Facilities?
The maximum assistance is 30 percent of the total approved proposal cost, capped at an upper limit of Rs 10 Crores per year for up to three years.
Can the FLOW grant be used for purchasing overseas property?
No. Eligible expenditure is strictly restricted to lease charges, rental costs, and operational expenses, entirely excluding capital expenditure.
Are foreign-registered logistics companies eligible for this funding?
No. Only entities that are formally incorporated in India under applicable Indian laws are eligible to apply for financial assistance under the FLOW initiative.
What is the deadline to submit stakeholder feedback on FLOW guidelines?
Stakeholders and industry associations can submit their comments and suggestions to the DGFT via email within 30 days from the issuance date of February 20, 2026.
हिंदी सारांश
विदेश व्यापार महानिदेशालय ने निर्यातकों को राहत देने के लिए फ्लो योजना शुरू की है। इस योजना के तहत विदेशों में वेयरहाउसिंग, लॉजिस्टिक्स और ई-कॉमर्स हब स्थापित करने के लिए भारतीय कंपनियों को तीस प्रतिशत तक की वित्तीय सहायता मिलेगी। यह सहायता केवल किराये और संचालन खर्चों के लिए है, संपत्ति खरीदने के लिए नहीं। स्वीकृत प्रोजेक्ट्स में बीस प्रतिशत जगह भारतीय एमएसएमई सेक्टर के लिए आरक्षित करना अनिवार्य होगा।
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