FLOW Scheme – Overseas Warehousing & Fulfilment Support

Q: What is the maximum support available?

Up to ₹10 crore per year depending on the activity.

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Table of Contents

Struggling with Delivery Delays and High International Logistics Costs?

Indian exporters face critical challenges in global markets that directly impact competitiveness:

Long Delivery Timelines – International shipments from India take 15-30 days, making it difficult to compete with local sellers and global e-commerce platforms like Amazon, Shopify, and eBay where customers expect 2-3 day delivery.

High Shipping Costs – Absence of local warehousing means exporters pay premium shipping rates for every order, significantly increasing product costs and reducing profit margins.

No Overseas Storage – Without warehousing infrastructure abroad, Indian MSMEs struggle to maintain inventory near their customers, handle returns efficiently, or provide local customer service.

Lost Market Access – Major international buyers and e-commerce platforms often require local fulfilment capabilities as a prerequisite for doing business, blocking market entry for Indian exporters.

Poor Customer Experience – Long wait times, high return costs, and lack of local support lead to poor customer reviews and reduced repeat business.

The FLOW Scheme addresses these exact challenges by providing financial support for overseas logistics infrastructure.

Exporters can further reduce financial burden by leveraging interest subvention schemes for export credit.

What is FLOW (Facilitating Logistics, Overseas Warehousing & Fulfilment)?

The FLOW Scheme, introduced by the Government of India under the Export Promotion Mission (EPM), is designed to support exporters—especially MSMEs—in overcoming logistics barriers in global trade.

It enables access to:

Overseas warehousing facilities
Fulfilment and distribution systems
Market-facing infrastructure

The objective is to improve delivery efficiency, reduce logistics costs, and enhance market responsiveness for Indian exporters.

This initiative is part of the broader Export Promotion Mission (EPM) aimed at strengthening India’s export ecosystem.

What is the Actual Benefit You Get?

FLOW provides substantial financial assistance to make overseas logistics operations viable and affordable:

Up to 30% Financial Assistance on Project Cost

The Government of India bears 30% of eligible operational expenses related to your approved overseas warehousing or fulfilment project, significantly reducing your financial burden.

Support for Overseas Warehousing & Storage

Get assistance for establishing or accessing warehouse facilities abroad including:

– Lease or rental charges for overseas warehouse space

– Inventory management systems and operations

– Returns processing and handling infrastructure

– Storage facility operational costs

Support for Fulfilment & Last-Mile Delivery Systems

Financial backing for:

– Local last-mile delivery arrangements in foreign markets

– Customer service infrastructure and operations

– Local distribution network setup

– Order processing and dispatch systems

Enhanced Market Access

– Product display centers in target markets

– Buyer interaction hubs for B2B engagement

– Consolidated showcasing facilities for Indian products

– E-commerce export hub integration

Exporters entering new markets can also benefit from support schemes for emerging export opportunities.

Improved Business Metrics

– 40-60% faster delivery times through local warehousing

– 20-35% reduction in logistics costs via shared infrastructure

– Better customer experience with local presence and support

– Higher conversion rates on international e-commerce platforms

– Access to premium buyers requiring local fulfilment capability

Operational Excellence

– Professional warehouse management by experienced operators

– Compliance with local storage and safety regulations

– Technology-enabled inventory tracking and reporting

– Scalable infrastructure that grows with your business

Mandatory MSME Focus

All approved projects must ensure minimum 20% of annual merchandise volumes are provided to Indian MSMEs, guaranteeing access for small exporters.

What Activities Are Covered?

The scheme supports a wide range of logistics and market access activities:

Overseas Warehousing Facility

Storage facilities in foreign markets
Inventory management
Returns processing

Overseas Fulfilment Arrangements

Last-mile delivery
Local distribution
Customer servicing

Display / Market Access Facilities

Product display centres
Buyer interaction hubs
Export promotion infrastructure

E-Commerce Export Hubs (ECEH)

Integration with global e-commerce logistics
Cross-border fulfilment support
Export-linked warehousing systems

How Much Support Can You Get?

The scheme provides financial assistance based on the type of activity:

30% of project cost (standard support rate)
Overseas Warehousing: up to ₹10 crore per year
Fulfilment Arrangements: up to ₹5 lakh per month
Display Facilities: up to ₹5 crore per year
E-commerce Export Hubs: up to ₹10 crore per year

Support is provided for a maximum period of 3 years.

Who Can Apply for FLOW Scheme?

Only entities incorporated in India under applicable Indian law can apply. The following categories are eligible:

1. Export Promotion Councils (EPCs) and Commodity Boards

– Recognized under Appendix 2T of Foreign Trade Policy (FTP)

– Example: Engineering Export Promotion Council, Apparel Export Promotion Council

– Role: Create shared infrastructure for member exporters

2. Logistics, Warehousing, or Fulfilment Service Providers

– Must have demonstrable international operations

– Proven track record of overseas logistics

– Existing infrastructure or partnerships abroad

– Example: Third-party logistics providers with global presence

3. Industry Associations or Recognized Exporter Clusters

– Registered industry bodies

– Exporter clusters recognized by government authorities

– Collective groups of exporters in specific sectors/regions

– Example: Tirupur Exporters Association, Surat Diamond Association

4. Central and State Government Organizations

– Government entities involved in export promotion

– State-level export corporations

– Public sector undertakings in trade

5. Entity Recommended by Central/State Government

– Organizations recommended by relevant ministries

– Entities proposed by state governments

– Special purpose vehicles for export promotion

6. Entity Recommended by SEPC or DEPC

– Recommended by State Export Promotion Committee (SEPC)

– Recommended by District Export Promotion Committee (DEPC)

– Local-level export facilitators

Documents Required

To apply under the FLOW Scheme, entities must submit:

Detailed project proposal (objectives, scope, outcomes)
Cost breakdown (leasing, operational expenses, etc.)
Target market and export strategy
Partnership agreements / MoUs
Proof of relevant experience
Financial structuring and funding details

Additional supporting documents may include:

Warehousing strategy
Compliance approvals
Monitoring plan

How to Apply for FLOW Scheme

Follow this step-by-step process:

Identify the project (warehouse / fulfilment / export hub)
Prepare a detailed proposal including cost and outcomes
Submit application in prescribed DGFT format (online)
Proposal evaluation by authorities
Approval and fund allocation
Project implementation and monitoring

Important Conditions to Know

Support is provided only for operational expenses (not capital expenditure)
Maximum assistance period is 3 years
Minimum 20% benefit must go to MSMEs
No duplication of benefits under other government schemes
Proper reporting, utilisation certificates, and compliance are mandatory

Who Should Use This Scheme?

This scheme is ideal for:

Exporters entering global markets
E-commerce exporters (Amazon, Shopify, etc.)
Businesses needing overseas storage and faster delivery
Export clusters building shared infrastructure
Logistics providers expanding international operations

How Afleo Helps You

We provide complete support to help you leverage the FLOW Scheme effectively:

Project planning and feasibility analysis
Proposal drafting and submission
Eligibility assessment and scheme mapping
Identification of logistics and warehousing partners
Coordination with DGFT and authorities
End-to-end implementation and compliance support

Why FLOW Scheme is Important

The FLOW Scheme is a strategic initiative that enables Indian exporters to build a global presence through local infrastructure.

By reducing delivery timelines and logistics costs, it helps businesses:

Compete with global players
Improve customer satisfaction
Expand into new international markets

FAQ’s

What is the FLOW Scheme?

It is a government initiative to support overseas logistics, warehousing, and fulfilment infrastructure for exporters.

Is this a subsidy for exporters?

Yes, it provides financial assistance of up to 30% of eligible project costs.

Can individual exporters apply?

No, applications are made through eligible entities such as EPCs and logistics providers.

What is the maximum support available?

Up to ₹10 crore per year depending on the activity

What costs are covered?

Operational expenses such as lease, rental, and facility costs.

How long is the support available?

Up to 3 years

Expand Globally with Overseas Warehousing Support

Take your export business to the next level with government-backed logistics support.