Govt mulling a new scheme to help exporters amidst Israel-Iran conflict

Exporters and energy-dependent industries told Moneycontrol earlier that a prolonged or wider conflict involving the United States, Israel and Iran could disrupt key trade routes

• Government may launch new scheme to aid exporters amid conflict
• Export Promotion Mission may be tweaked for more incentives
• Conflict disrupts trade routes, raises costs for Indian exporters

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The central government is mulling on creating a new scheme to help exporters who are struggling amidst the ongoing conflict, a senior government official said.

We may also tweak the Export Promotion Mission to offer some more incentives to help our exporters, the official said, adding that any certainty on these lines can only be provided -- if the conflict shows no signs on easing in the coming days.

Exporters and energy-dependent industries told Moneycontrol earlier that a prolonged or wider conflict involving the United States, Israel and Iran could disrupt key trade routes, push up freight and insurance costs, and trigger renewed volatility in energy markets.

The Export Promotion Mission (EPM) is a flagship initiative designed to provide coordinated support across key elements of the export ecosystem, including trade finance, standards compliance, logistics, overseas warehousing and market development.

Approved by the Government in November 2025, the Mission brings together multiple export-support measures under a single, unified and digitally driven framework.

With a total outlay of Rs 25,060 crore for the period FY 2025–26 to FY 2030–31, EPM seeks to enhance export competitiveness and expand India’s global presence, according to a government release.

The Mission is implemented through two integrated sub-schemes: Niryat Protsahan, which focuses on financial enablers and trade-finance support, and Niryat Disha, which addresses non-financial, market-access and ecosystem enablers.

Pankaj Chadha, Chairman of EEPC India, described the situation as “quite worrying” for the exporting community. For engineering goods, Saudi Arabia and the United Arab Emirates are among India’s key markets and also serve as a gateway to exports to the wider WANA (West Asia and North Africa) region.

SC Ralhan, President of the Federation of Indian Export Organisations, said the ongoing conflict has already begun to disrupt established global logistics channels.

Heightened geopolitical risk typically results in higher marine insurance premiums, further adding to transaction costs for exporters.

A prolonged disruption could exert upward pressure on global energy prices, with consequential implications for input costs and currency stability, including pressure on the rupee, FIEO observed.