New Delhi, March 19 – The government on Thursday launched the RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme, with an outlay of ₹497 crore, to assist exporters facing disruptions due to the ongoing conflict in West Asia.
The scheme, implemented by the Export Credit Guarantee Corporation of India (ECGC), 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 initiative aims to support Indian exporters affected by increased freight costs, higher insurance premiums, and export risks related to disruptions in the Gulf and wider West Asia maritime corridor.
Speaking to reporters, Commerce Secretary Rajesh Agarwal said, "We are announcing a new scheme under the Export Promotion mission, specifically focused on exporters who are exposed to the 17-18 geographies impacted by the conflict, to address some of the challenges they are facing."
He added that the West Asia conflict has had an impact on trade, and exporters are facing certain challenges, particularly those with exposure to countries in the Gulf region.
"We have seen instances where exports destined for some Middle Eastern countries have not reached their destinations. Future exports are also being affected. This is causing concern, especially for exporters who are exposed to the Middle East market," Agarwal said.
He also announced the formation of an inter-ministerial group (IMG) comprising various government departments, including the Commerce Ministry, the Ministry of Petroleum and Natural Gas, Ports and Shipping, the Department of Financial Services, the Ministry of External Affairs, and officials from the RBI and CBIC, which will meet daily to assess the evolving situation based on cargo movement.
Director General of Foreign Trade (DGFT) Lav Agarwal told reporters that there were challenges related to increased logistics costs, war-risk premiums, and emergency surcharges, as well as challenges due to cargo accumulation at ports and airports, with perishable and refrigerated cargo being most affected.
The Commerce & Industry Ministry said that 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 light 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 as the implementing agency, includes automatic extension of export obligations, logistical support, and potential financial measures to manage shipping delays.
It primarily 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 export consignments over three months from March 16 to June 15.
Component III specifically targets MSMEs to protect 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 ₹497 crore 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.