Centre unveils RELIEF scheme to shield exporters from crisis
The Centre launched a Rs 497 crore RELIEF scheme to support exporters hit by West Asia conflict disruptions, offering logistical support, extended export obligations and financial relief to offset rising freight, insurance costs and operational uncertainties in key Gulf trade routes
New Delhi: The government on Thursday rolled out the RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme with an outlay of Rs 497 crore to provide relief to exporters facing disruptions due to the ongoing West Asia conflict.
The scheme, with the Export Credit Guarantee Corporation of India (ECGC) as the implementing agency, includes automatic extension of export obligations, logistical support, and potential financial measures to manage shipping delays and higher freight and insurance costs, according to a Commerce Ministry release.
The intervention is aimed at supporting Indian exporters affected by extraordinary freight escalation, heightened insurance premiums, and war-related export risks arising from disruptions in the Gulf and wider West Asia maritime corridor.
Speaking with reporters, Commerce Secretary Rajesh Agarwal said, “We are announcing a new scheme under the Export Promotion mission, especially focused upon exporters exposed to these 17-18 geographies which have been impacted by the conflict to assuage some of the challenges that our exporters are facing.” He said due to the West Asia conflict, there has been some impact on the trade environment and exporters are facing certain challenges, with a “sense of worry” particularly among those having exposure to countries in the Gulf region.
“There have been instances where the exports which were meant for some of the countries in the Middle East have not been able to reach their destinations. The future exports are also getting impacted. There is a sense of worry in exporters especially among those who have exposure to the Middle East markets,” Agrawal said.
He also informed that an inter-ministerial group (IMG) has been set up comprising various government departments, including the Commerce ministry, Ministry of Petroleum and Natural Gas, Ports and Shipping, Department of Financial Services, Ministry of External Affairs, and officials from the RBI, CBIC, etc, which meets daily to assess the evolving situation based on cargo movement.
Director General of Foreign Trade (DGFT) Lav Agarwal told reporters that there was dual shock as both air and maritime cargo were affected .
“There were challenges related with the sharp increase in logistics costs, war-risk premiums and emergency surcharges. Similarly, there were challenges due to cargo accumulation at ports and airports with perishable and refrigerated cargo most affected,” he said.
The Commerce & Industry Ministry said recent developments, including heightened security concerns around the Strait of Hormuz, have led to vessel diversions, longer sailing routes, congestion at transhipment hubs and emergency conflict-linked surcharges. These developments have increased logistics costs and created operational uncertainty for export consignments moving to or through the region.
“In view of the evolving geopolitical situation in West Asia and its impact on maritime logistics across the Gulf region, the Government has approved a time-bound and targeted intervention called RELIEF – Resilience & Logistics Intervention for Export Facilitation under the Export Promotion Mission (EPM). The intervention is aimed at supporting Indian exporters affected by extraordinary freight escalation, heightened insurance premia and war-related export risks arising from disruptions in the Gulf and wider West Asia maritime corridor,” the ministry said.
The RELIEF scheme, with ECGC (Export Credit Guarantee Corporation of India) as the implementing agency, includes automatic extension of export obligations, logistical support, and potential financial measures to manage shipping delays.
It mainly covers consignments destined for delivery or transhipment to the UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel, and Yemen.
The scheme has three key components. Component I includes Export Obligation Extensions: Automatic extension for Advance Authorisations and EPCG authorisations (due between March 1 and May 31, 2026) until August 31, 2026, without penalty. It protects already insured shipments by ECGC in the immediate one-month window from February 14-March 15.
Component II is aimed at encouraging and facilitating ECGC coverage for upcoming exports consignments over three months from March 16 to June 15.
The Component III specifically targets MSMEs to shield them from surcharge shocks and partly reimburses extraordinary freight and insurance costs over one month from February 14 to March 15. It is applicable for MSME exporters who have not taken ECGC coverage.
“Implementation of RELIEF under Export Promotion Mission will be undertaken with an approved financial outlay of Rs 497 crores under the Mission. ECGC will maintain a dashboard-based monitoring system to enable real-time tracking of claims and fund utilisation. The EPM Steering Committee will periodically review the operation of the intervention in light of evolving geopolitical conditions and may recommend calibrated modification, continuation or withdrawal as necessary.
“Through RELIEF, the Government aims to mitigate the immediate impact of logistics disruptions, protect exporter confidence, prevent order cancellations and safeguard employment in export-linked sectors. The intervention also reinforces India’s commitment to maintaining resilience and competitiveness in global trade during periods of uncertainty,” the Commerce & Industry Ministry stated.
