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DGFT launches FLOW Scheme to mitigate logistics-related constraints faced by pharma MSMEs
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Shardul Nautiyal, Mumbai
February 26 , 2026
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In order to mitigate logistics-related constraints faced by pharma MSMEs, involved in international value chains, in accessing overseas markets, Directorate General of Foreign Trade (DGFT) has launched Facilitating Logistics, Overseas Warehousing & Fulfilment (FLOW) Scheme under Export Promotion Mission (EPM).
According to the DGFT, this intervention shall be operationalised on a pilot basis for feedback, institutional learning, and data-driven refinements. The guidelines for the same have also been issued for stakeholder feedback in accordance with Paragraph 1.07A of the Foreign Trade Policy (FTP) 2023.
This Government initiative seeks to support entities in improving delivery efficiency, reducing logistics costs and enhancing market responsiveness through access to overseas logistics and fulfilment arrangements. The assistance under the FLOW Scheme covers access to, overseas facilities or arrangements for storage, distribution, display or fulfilment of goods, in accordance with the conditions prescribed.
Support may extend to access-based and pay-per-use overseas fulfilment arrangements, including shared or rental warehousing and other market-aligned fulfilment models such as just-in-time delivery, drop-shipping, ready-to-ship inventory, or similar mechanisms.
Only entities incorporated in India under applicable Indian law shall be eligible for assistance. Entities which may be considered for assistance under FLOW are the Pharmaceuticals Export Promotion Council of India (Pharmexcil), logistics, warehousing or fulfilment service providers having demonstrable international operations, industry associations or recognised exporter clusters, entity recommended by the Central government and state government, and entity recommended by the State Export Promotion Committee (SEPC) or District Export Promotion Committee (DEPC).
Activities eligible for support shall include, inter alia: Overseas warehousing facility, overseas fulfilment arrangements, display or market access facilities, and e-commerce export hubs (ECEHs) – support for export-linked warehousing, fulfilment and facilitation activities undertaken through notified e-commerce, export hubs located in India, as defined under Chapter 9 of the FTP, including integration with overseas fulfilment or distribution networks for cross-border e- commerce exports. Approved projects shall ensure that a minimum of 20% of the annual merchandise volumes are provided to Indian MSMEs.
As per the scheme, overseas warehousing facility means a facility located outside India used for storage, returns processing, or distribution of goods, whether owned, leased, or accessed through third-party arrangements.
Overseas fulfilment arrangement means a contractual arrangement to undertake local storage, last-mile delivery, customer service, or returns management in a foreign market.
Display or market access facility means a physical overseas facility used for product display, sampling, buyer interaction, or consolidated showcasing of Indian products, without involving retail sales to final consumers.
Expenditure eligible for support shall be restricted to lease or rental charges, common facility costs, and operational expenses directly attributable to the approved project excluding capital expenditure. Assistance up to a period of maximum 3 years shall be provided under FLOW.
The level of assistance for each of the sub-Interventions, subject to a support ceiling, is as follows: Overseas warehousing facility - 30% of proposal cost subject to a maximum of Rs. 10 crore per year, Overseas fulfilment arrangements - 30% of proposal cost subject to a maximum of 5 lakh per month, display or market access facilities - 30% of proposal cost subject to a maximum of Rs. 5 crore per year and e-commerce export hubs – 30% of proposal cost subject to a maximum of Rs. 10 crore per year.
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