India Unveils RELIEF Scheme to Support Exporters Amid West Asia Crisis

The Indian government has launched the RELIEF scheme to aid exporters affected by upheaval in West Asia. With a budget of Rs 497 crore, the plan aims to mitigate soaring logistics and insurance costs through tailored support, ensuring continuity in export flows and preserving market share during the crisis.

The Indian government has introduced the Resilience & Logistic Intervention for Export promotion (RELIEF) scheme in response to the ongoing geopolitical tensions in West Asia, which have significantly affected the country's export sector. The initiative focuses on providing a targeted support package to stabilize export activities and safeguard India's market presence amid rising costs.

During a press conference, Commerce Secretary Rajesh Agrawal highlighted the severe repercussions of the Middle East conflict on trade, noting significant 'challenges due to this conflict.' The RELIEF scheme, with a financial allocation of Rs 497 crore, is part of the wider Export Promotion Mission (EPM) and includes three distinct components addressing various segments of Indian exporters.

A core part of the RELIEF plan involves the Export Credit Guarantee Corporation of India (ECGC) in managing the scheme. The rising costs in maritime logistics, including freight rate hikes, pose a severe threat, particularly impacting MSMEs with limited resources. The comprehensive scheme aims to prevent further strain and maintain regional trade flows.

(With inputs from agencies.)