March 20, New Delhi — Rising security concerns around the Strait of Hormuz have disrupted maritime trade routes, leading to vessel diversions, longer sailing routes, congestion at transshipment hubs, and emergency conflict-related 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 titled RELIEF – Resilience & Logistics Intervention for Export Facilitation under the Export Promotion Mission (EPM). The initiative aims to support Indian exporters affected by extraordinary freight escalation, increased insurance premiums, and war-related export risks arising from disruptions in the Gulf and the wider West Asia maritime corridor.
The approval of RELIEF reflects the Government’s commitment to respond swiftly to external disruptions affecting India’s trade flows.
As part of a coordinated whole-of-government response, an Inter-Ministerial Group (IMG) on Supply Chain Resilience was operationalized on March 2, 2026, to monitor the situation and coordinate facilitation measures. The IMG began daily review meetings from March 3, 2026, bringing together multiple ministries and departments, financial institutions, logistics stakeholders, and exporter associations.
Based on IMG deliberations, several operational measures were implemented, including procedural relaxations for stranded cargo movement, enhanced coordination at ports, waivers of storage and dwell-time charges for affected cargo, advisories to promote transparency in shipping line pricing, and strengthened monitoring of insurance risk developments and inland logistics movement. These coordinated efforts enabled real-time assessment of ground-level challenges and supported the design of a targeted financial risk-mitigation intervention.
RELIEF has been structured to provide support across the export cycle by covering shipments that have already left during the disruption period as well as prospective exports planned to the affected region.
Under the approved framework, ECGC Ltd., formerly Export Credit Guarantee Corporation of India Ltd. and wholly owned by the Government of India under the Ministry of Commerce & Industry, has been designated as the nodal and implementing agency. ECGC will be responsible for verification, claim processing, disbursement, and monitoring. Its experience in providing export credit risk cover against commercial and political risks, including war-related contingencies, is expected to ensure credible and timely delivery of assistance.
The RELIEF intervention comprises three complementary components covering consignments destined for countries in the region such as the United Arab Emirates, Saudi Arabia, Kuwait, Israel, Qatar, Oman, Bahrain, Iraq, Iran, and Yemen, meant either for delivery or transshipment.
First, exporters who have already obtained ECGC credit insurance cover for eligible consignments will benefit from up to 100 percent risk coverage, over and above the existing ECGC cover, during the eligible period from February 14 to March 15, 2026, ensuring enhanced protection without additional financial burden.
Second, exporters planning upcoming consignments during the next three months, from March 16 to June 15, 2026, will be encouraged to obtain ECGC cover with Government support for up to 95 percent risk coverage, over and above the existing ECGC cover. This measure is aimed at sustaining exporter confidence and facilitating continued shipment flows despite logistics uncertainties.
Third, recognizing that some MSME exporters may not have availed credit insurance during the disruption period from February 14 to March 15, 2026, RELIEF includes a partial reimbursement mechanism of up to 50 percent for eligible non-ECGC-insured MSME exporters facing extraordinary freight and insurance surcharge burdens. The support will be extended subject to prescribed conditions, documentary verification, and notified ceilings of up to ₹50 lakh per exporter to provide timely relief against conflict-related logistics cost escalation.
Implementation of RELIEF under the Export Promotion Mission will be undertaken with an approved financial outlay of ₹497 crore. ECGC will maintain a dashboard-based monitoring system to enable real-time tracking of claims and fund utilization. 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.
(Source: Ministry of Commerce & Industry)
