The Uttar Pradesh government has enhanced freight subsidy rates for MSME exporters to reduce logistics costs and strengthen their competitiveness in international markets.
Lucknow, 19 February 2026 – The Uttar Pradesh government has announced a significant increase in freight subsidy provided to exporters transporting goods to gateway ports. The decision aims to support Micro, Small and Medium Enterprises (MSMEs) in maintaining competitiveness in global markets, particularly as the state is landlocked and does not have direct access to seaports.
Due to its geographical position, exporters from Uttar Pradesh incur higher transportation costs while sending goods to international markets. To address this structural disadvantage, the state government has been implementing a freight reimbursement scheme for manufacturing exporters under the MSME category. The scheme covers expenses incurred while transporting goods to ports through Inland Container Depots (ICDs), Container Freight Stations (CFS), or by truck.
As per the government order issued on 6 November 2025, the financial assistance has been substantially revised. The subsidy for a 20-foot container, previously fixed at ₹10,000 per TEU, has now been increased to ₹20,000 per TEU. Similarly, the assistance for a 40-foot container has been enhanced from ₹20,000 per TEU to ₹40,000 per TEU. The revised rates are applicable to freight expenses incurred while transporting export consignments to gateway ports.
The government has also increased the maximum financial assistance admissible to any exporter unit in a single financial year. The earlier cap of ₹20 lakh has been raised to ₹30 lakh, providing additional support to exporters with larger shipment volumes. This move is expected to significantly reduce logistics costs and improve profit margins for exporting units across the state.
Under the scheme, the definition of gateway ports includes not only seaports but also dry ports through which containers and trucks carrying export consignments pass en route to neighboring countries. By expanding the scope, the government has ensured that exporters sending goods through different logistical routes remain eligible for financial assistance.
The scheme has already benefitted a large number of exporters in recent years. During the financial year 2023–24, reimbursement amounting to ₹1,736.13 lakh was provided, benefiting 2,470 exporter units. In the financial year 2024–25, financial assistance totaling ₹2,133.72 lakh was distributed among 2,871 exporter units. For the ongoing financial year, approval of online applications is currently under process, and payments for claims received from districts have been completed.
Officials stated that the freight subsidy initiative forms part of the broader industrial development strategy of the state. The government has been supporting entrepreneurs by facilitating land allocation and providing essential infrastructure for setting up industrial units. Emphasis has been placed on creating a strong economic base built on skilled manpower, quality infrastructure, and a secure and transparent business environment.
The Industrial Investment and Employment Promotion Policy 2022 has been framed to promote sustainable industrial growth in the state. In a rapidly evolving global economy marked by technological advancements, Uttar Pradesh has focused on developing a stable and balanced policy framework supported by a robust legal and regulatory structure. The policy prioritizes coordination and partnership between the government and the private sector to strengthen the industrial ecosystem.
Along with encouraging the establishment of industries, the government has ensured support for export of manufactured goods. Freight subsidy is considered a crucial component of this support system, as transportation costs directly affect export competitiveness. By increasing the subsidy rates, the state aims to encourage higher export volumes and expand the reach of local products in international markets.
Under the new export policy, subsidy rates have also been enhanced under existing schemes, including financial assistance for international marketing development, freight subsidy to gateway ports, and air freight rationalization support. These measures are intended to make export promotion schemes more beneficial and accessible to exporters across Uttar Pradesh.
The increased freight subsidy is expected to provide direct financial relief, promote export diversification, and strengthen the MSME sector. By reducing logistical barriers and improving cost efficiency, the government aims to position Uttar Pradesh as a competitive player in global trade networks while accelerating industrial growth and employment generation within the state.
