Srinagar: The Kashmir Chamber of Commerce and Industry (KCCI) has welcomed the launch of the Logistics Interventions for Freight & Transport (LIFT) scheme under the Export Promotion Mission – NIRYAT DISHA, introduced by the Ministry of Commerce and Industry, Government of India.
In a statement issued here, the Chamber described the initiative as a significant step towards addressing long-standing logistical challenges faced by exporters from Jammu & Kashmir, particularly those operating from geographically remote and hinterland regions.
KCCI said the scheme is expected to provide much-needed support by helping reduce freight and logistics costs associated with exports, thereby mitigating the geographical disadvantages faced by exporters from the Union Territory and improving their competitiveness in international markets.
The Chamber expressed satisfaction that Jammu & Kashmir has been included among the eligible regions under the scheme, enabling exporters from the region to avail benefits such as freight cost reimbursement for exporting notified products.
According to KCCI, the introduction of the scheme fulfils a long-pending demand raised repeatedly by the Chamber regarding the high freight costs and logistical disadvantages faced by exporters from the region due to its landlocked geography and lack of direct access to seaports. Exporters from Kashmir often have to transport goods to distant cargo terminals and ports, significantly increasing transportation costs and affecting their competitiveness in global markets.
The Chamber recalled that it had taken up the issue on multiple occasions with the Directorate General of Foreign Trade (DGFT) and the Ministry of Commerce & Industry during various consultations with policymakers.
KCCI President Javid Ahmad Tenga had also submitted a memorandum to the Union Ministry of Commerce highlighting the urgent need for a freight assistance mechanism to support exporters from Jammu & Kashmir.
Welcoming the decision, KCCI appreciated the Ministry of Commerce and Industry and the DGFT for acknowledging the concerns of exporters and introducing the LIFT scheme aimed at supporting micro, small and medium enterprises (MSMEs) operating from geographically disadvantaged regions.
Under the scheme, eligible MSME exporters will receive partial reimbursement of freight costs, helping offset the burden of high logistics expenses. Exporters can receive reimbursement of up to 30 percent of freight expenditure, excluding applicable taxes, with the maximum financial assistance capped at ₹20 lakh per Importer-Exporter Code (IEC) per financial year.
The scheme applies to export shipments transported from MSME premises to Inland Container Depots, Container Freight Stations, seaports and Air Cargo Complexes, specifically targeting exporters located in regions facing logistical challenges due to distance and connectivity constraints.
KCCI said the scheme is expected to particularly benefit exporters dealing in traditional and high-value products such as walnuts, saffron, apples, pashmina shawls, carpets, handicrafts and spices, which form a major part of Kashmir’s export economy.
The Chamber expressed hope that the initiative will help improve the competitiveness of exporters from Jammu & Kashmir, encourage greater participation of local businesses in international trade and contribute to the overall growth of the region’s export sector.
