Government launches RELIEF Scheme to shield exporters hit by West Asia crisis

RELIEF will cover insured exporters and non-ECGC insured MSME exporters for one month, and future shipments for three months.

• Centre launches RELIEF scheme to support exporters during crisis
• Rs 497 crore allocated to offset rising freight and insurance costs
• RELIEF provides better insurance, stable rates, and MSME aid

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The central government, on March 19, announced the launch of a new initiative, Resilience & Logistics Intervention for Export Facilitation (RELIEF) with an outlay of Rs 497 crore to cushion exporters from rising freight and insurance costs amid the crisis in West Asia.

The relief package will fall under the Export Promotion Mission (EPM) and will be implemented through the Export Credit Guarantee Corporation of India.

The expenditure for the new scheme will be met from the existing allocation under the Export Promotion Mission.

Commerce Secretary Rajesh Agrawal said that due to the crisis in the Middle East, there has been some impact on trade in India. Indian exporters shipping goods to the region are facing challenges, with some consignments not reaching their destinations, raising concerns over future exports.

Therefore, this new scheme, focusing on the 17–18 impacted destinations has been launched, aimed at easing the issues faced by exporters with exposure to the region.

The commerce ministry described the RELIEF package as “a calibrated support package to stabilise India’s export flows and protect India’s market share during the crisis.”

RELIEF Details

The new scheme introduces additional features to three components of the EPM. The first one protects already insured shipments in the immediate one-month window, the second one, facilitates ECGC uptake for upcoming shipments for upcoming consignments over three months, and the third partly reimburses extraordinary freight and insurance cost over one month.

Under Component I, premiums will not increase beyond pre-disruption levels for eligible periods, while the Export Credit Guarantee Corporation of India (ECGC) will cover losses arising from war-related and associated political risks in affected countries.

The scheme provides enhanced insurance coverage of up to 100 percent of losses, subject to verification and approved terms.

The government will reimburse ECGC for compensation paid beyond the limits of existing policy cover. However, back-to-town cargo cases will be excluded from government support.

The disbursement mechanism specifies that eligible shipments must have a bill of lading or airway bill issued within the defined period and must be destined for covered locations or transshipment routes.

Claims related to war or political risks will be verified by ECGC, with the agency settling claims up to the full loss amount. The government will reimburse only the excess over normal policy payouts.

Under Component II, the government aims to encourage and facilitate ECGC coverage for upcoming exports. The initiative is designed to bring fresh consignments under ECGC protection while keeping the premium burden unchanged for exporters during the disruption period.

The eligibility window covers shipments with bills of lading or airway bills issued between mid-March and mid-June 2026, excluding energy shipments.

The scheme applies to consignments destined for or transiting through several affected countries, including the UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel and Yemen. It will cover full container, partial container and refrigerated cargo.

Exporters will have the option to avail ECGC coverage during this period, with support for war and political risks and stable premiums. The total estimated government support under the scheme is around Rs 159 crore.

Under this component, ECGC may provide enhanced coverage of upto 95 percent of losses, subject to verficiations and the government will reimburse the excess over policy cover.

A third component of the scheme provides reimbursement support specifically for MSME exporters who are not covered under ECGC policies. This component applies to consignments where the onboard bill of lading or airway bill was issued between February 14 and March 15, 2026.

The benefit is limited to MSME exporters who did not avail ECGC coverage and whose shipments were destined for or transiting through the affected region, including the UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel and Yemen. It covers full container, partial container and refrigerated cargo, while excluding back-to-town cargo cases.

Under this component, up to 50 percent of the additional insurance and freight burden actually borne by the exporter will be reimbursed, subject to verification. The support will be capped at the actual loss, based on submission of documentary proof, with an overall ceiling of Rs 50 lakh per exporter or IEC.

The estimated support under Component III is around Rs 282 crore.

“The Centre is trying to give support to Indian exporters because these are extraordinary times,” Rajesh Agrawal said, underlining the government’s commitment to maintaining trade continuity despite global supply chain disruptions.