India Launches RELIEF Scheme to Support Exporters

Amid rising geopolitical tensions in West Asia and disruptions in maritime logistics, the Government of India has approved a targeted intervention named RELIEF (Resilience & Logistics Intervention for Export Facilitation) under the Export Promotion Mission (EPM). The move aims to support exporters affected by escalating freight costs, higher insurance premiums and operational uncertainties linked to disruptions around the Strait of Hormuz and the wider Gulf region.

Background of Logistics Disruptions

Recent security concerns in the Gulf have led to vessel diversions, longer shipping routes, congestion at transshipment hubs and additional war-related surcharges. These developments have significantly increased logistics costs and created uncertainty for Indian export consignments moving to or through West Asia, a key trade corridor.

Government’s Coordinated Response

To address the evolving situation, an Inter-Ministerial Group (IMG) on Supply Chain Resilience was operationalised on 2 March 2026. The group has been conducting daily reviews since 3 March, involving multiple ministries, financial institutions and industry stakeholders. Measures implemented include procedural relaxations, waivers on port storage charges, improved port coordination and monitoring of freight pricing and insurance risks.

Key Features of RELIEF Scheme

The RELIEF scheme provides comprehensive support across the export cycle. Exporters with existing ECGC insurance cover for shipments during 14 February to 15 March 2026 will receive up to 100 per cent additional risk coverage. For upcoming shipments between 16 March and 15 June 2026, exporters can avail up to 95 per cent risk coverage with government support. Additionally, MSME exporters without insurance cover during the disruption period will receive up to 50 per cent reimbursement of freight and insurance surcharges, subject to a ceiling of ₹50 lakh per exporter. ECGC Ltd has been designated as the nodal implementing agency.

Important Facts for Exams

• RELIEF scheme is launched under the Export Promotion Mission (EPM).
• ECGC provides export credit risk insurance against commercial and political risks.
• Strait of Hormuz is a critical global oil and trade route.
• MSMEs receive special reimbursement support under RELIEF.

Objective and Financial Outlay

The scheme will be implemented with a financial outlay of ₹497 crore and monitored through a dashboard-based system for real-time tracking. The EPM Steering Committee will periodically review the intervention based on geopolitical developments. The initiative seeks to protect exporter confidence, prevent order cancellations and maintain India’s competitiveness in global trade during periods of external disruption.