Government Launches ₹497 Cr RELIEF Scheme to Support Exporters Amid West Asia Disruptions

The Government of India has announced a ₹497-crore support package to assist exporters impacted by rising freight costs, higher insurance premiums, and war-related risks linked to the ongoing tensions in West Asia.

The scheme, titled Resilience & Logistics Intervention for Export Facilitation (RELIEF), will be funded under the existing Export Promotion Mission allocation, with safeguards for verification and implementation, according to the Commerce Department.

Rajesh Agrawal said the scheme is designed to offer end-to-end support across the export cycle, covering both shipments already dispatched during the disruption and those planned for affected markets.

The intervention targets consignments bound for key West Asian destinations, including the United Arab Emirates, Saudi Arabia, Kuwait, Israel, Qatar, Oman, Bahrain, Iraq, Iran, and Yemen, including both direct shipments and trans-shipment routes.

Lav Agarwal, Director General of Foreign Trade, highlighted that trade through this region accounts for nearly $178 billion, including about $56 billion with GCC countries, representing around 15% of India’s global trade.

Industry experts noted that the government’s response is evolving beyond immediate relief. Balasundaram R, Head of Marine Insurance at Policybazaar for Business, said the initiative reflects a broader strategy to support exporters through logistical and financial challenges.

ECGC Ltd has been appointed as the nodal agency responsible for verification, claims processing, disbursement, and monitoring under the scheme.

The RELIEF scheme includes three major components:

Enhanced risk cover for past shipments: Exporters with existing ECGC credit insurance for shipments between February 14 and March 15, 2026, will receive up to 100% risk coverage, compared to the earlier 75–80%, without additional cost.

Support for upcoming exports: For shipments planned between March 16 and June 15, exporters will be encouraged to obtain ECGC cover, with government-backed risk coverage of up to 95% to maintain export momentum.

Relief for MSMEs: MSME exporters who did not have ECGC insurance but faced increased freight and insurance costs will be eligible for reimbursement of up to 50%, capped at ₹50 lakh per exporter, subject to conditions.

The government is also exploring the creation of a sovereign insurance pool in collaboration with domestic insurers and reinsurers to provide coverage for shipments through high-risk zones. Discussions are ongoing with ECGC to design specialised protection against delayed payments and contract cancellations.

Officials said the scheme will be reviewed periodically based on evolving geopolitical developments, ensuring continued support for exporters navigating global uncertainties.