RELIEF Scheme Supports Exporters Amid West Asia Crisis

The Government of India has recently approved the RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme to assist exporters affected by severe maritime disruptions in West Asia. The initiative comes in response to rising freight costs, increased insurance premiums, and heightened risks due to ongoing geopolitical tensions in the region.

Objective and Scope of the Scheme

The RELIEF scheme is designed to provide targeted, time-bound support to Indian exporters facing extraordinary logistical and financial challenges. It operates under the Export Promotion Mission (EPM) and focuses on mitigating risks associated with disrupted maritime routes in the Gulf and wider West Asia corridor. The scheme covers consignments destined for or transiting through key countries such as the UAE, Saudi Arabia, Kuwait, Israel, Qatar, Oman, Bahrain, Iraq, Iran, and Yemen.

Key Features and Financial Support

A major component of the scheme is enhanced risk coverage. Exporters with existing ECGC (Export Credit Guarantee Corporation) insurance for shipments made between 14 February and 15 March 2026 are eligible for up to 100% coverage for additional conflict-related losses. For prospective shipments between 16 March and 15 June 2026, up to 95% risk coverage is provided to maintain export momentum and confidence.

Support for MSMEs and Operational Relief

The scheme offers special provisions for MSMEs. Non-insured MSME exporters can claim up to 50% reimbursement of extraordinary freight and insurance surcharges, subject to a cap of ₹50 lakh per exporter. Additionally, operational relief measures include waivers of storage and dwell time charges at ports and procedural relaxations for stranded cargo, coordinated by an Inter-Ministerial Group (IMG).

Important Facts for Exams

• RELIEF scheme is launched under the Export Promotion Mission (EPM).
• It provides up to 100% risk coverage for past shipments under ECGC.
• MSMEs can claim up to ₹50 lakh reimbursement for extra logistics costs.
• Scheme targets disruptions in West Asia maritime trade routes.

Implementation and Monitoring Mechanism

The scheme is implemented by ECGC Ltd., which will manage claims and ensure timely disbursement of support. A real-time dashboard system will track fund utilisation and claims, ensuring transparency and efficiency. Periodic reviews by the EPM Steering Committee will further ensure that the scheme remains responsive to evolving trade disruptions and exporter needs.