Government has approved RELIEF (Resilience & Logistics Intervention for Export Facilitation) – an intervention under Export Promotion Mission to support exporters in response to geopolitical disruptions in West Asia, particularly around the Strait of Hormuz.
Background
- Recent developments in West Asia have led to diversion of shipping routes, longer transit times, congestion at transshipment hubs, increased freight and insurance costs, war-related surcharges.
- These factors have created operational uncertainty and higher logistics costs for Indian exporters.
About RELIEF Scheme
- Objective: It aims to
- Support exporters facing freight and insurance cost escalation
- Provide risk coverage for export consignments
- Ensure continuity of exports despite disruptions
- Protect MSMEs and employment in export sectors
- Nodal Agency: Export Credit Guarantee Corporation of India (ECGC)
- ECGC is wholly owned by the Government of India
- It functions under the Ministry of Commerce & Industry
- Coverage of RELIEF Scheme: It covers exports to major countries in the Gulf and West Asia region, including:
- UAE, Saudi Arabia, Kuwait
- Israel, Qatar, Oman, Bahrain
- Iraq, Iran, Yemen
- Applicability: It applies to both
- Past shipments (during disruption period)
- Future export consignments
- Financial Outlay: ₹497 crore
- Monitoring: ECGC will maintain a dashboard-based real-time monitoring system
- The scheme will be reviewed by the EPM Steering Committee
Three Key Components of RELIEF
| Category of Exporters | Objective / Impact | Key Features / Provisions |
|---|---|---|
| 1. Existing ECGC-insured Exporters | Provides enhanced protection against export risks during crisis period | • Applicable period: February 14, 2026 to March 15, 2026 |
| • Up to 100% risk coverage over and above existing ECGC cover | ||
| • No additional financial burden | ||
| 2. Upcoming Exporters (Planned Consignments) | Sustains exporter confidence and ensures continuity of export shipments | • Applicable period: March 16, 2026 to June 15, 2026 |
| • Government-supported coverage up to 95% over existing ECGC cover | ||
| • Encourages obtaining ECGC insurance | ||
| 3. MSME Exporters without ECGC Cover | Provides relief from increased logistics costs due to conflict situations | • Applicable period: February 14, 2026 to March 15, 2026 |
| • Partial reimbursement up to 50% of freight and insurance surcharge | ||
| • Maximum limit: ₹50 lakh per exporter | ||
| • Subject to conditions and verification |