More measures likely after RELIEF package to aid exporters hit by West Asia crisis

The scheme covers shipments to or transiting through affected markets including the UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel and Yemen

• Govt to boost aid for exporters affected by West Asia crisis
• RELIEF scheme offers insurance and freight cost aid to exporters
• March exports expected to remain stable despite disruptions

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The central government is working on additional measures involving the finance ministry to further support exporters hit by the crisis in West Asia, a government official said, indicating that the relief package announced on March 18 is only the first step.

“There will be more measures, on the finance and the banking side, this is just a start,” the official said.

The remarks come after the government unveiled additional incentives under the Export Promotion Mission (EPM) to cushion exporters from disruptions in West Asia trade routes.

The package called Resilience & Logistics Intervention for Export Facilitation (RELIEF) primarily targets the sharp increase in freight costs, insurance premiums and risks to shipments following the ongoing geopolitical tensions in the region, which have impacted consignments to key markets.

A central element of the scheme is enhanced support through the Export Credit Guarantee Corporation of India.

Under this, the government will ensure that insurance premiums do not rise beyond pre-disruption levels. In eligible cases, coverage of up to 100 percent of losses will be provided, with the government reimbursing ECGC for payouts beyond standard policy limits.

The second component focuses on facilitating upcoming exports by encouraging continued ECGC coverage for shipments during the disruption period, helping exporters maintain trade flows despite elevated risks.

A third component is aimed at MSME exporters not covered under ECGC policies. It provides reimbursement of up to 50 percent of the additional insurance and freight burden actually borne by exporters due to the crisis, subject to verification and documentation, with a cap of Rs 50 lakh per exporter or IEC.

The scheme covers shipments to or transiting through affected markets including the UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel and Yemen, across full container, partial container and refrigerated cargo.

Despite the disruptions, the official indicated that the overall impact on India’s exports in March may be limited.

“March exports won’t be very much lower than last March, the impact due to the Strait of Hormuz situation will be limited, but it will be almost as much as it was in the same month last year,” the official said.

India’s merchandise exports in March 2025 stood at $41.58 billion.

More recently, India’s trade gap in goods in February significantly widened to $27 billion from $14.42 in the same month last year.

This is because while goods exports were slightly down last month by 0.8 percent on a year-on-year basis, merchandise imports jumped over 24 percent.