Government Unveils RELIEF Scheme to Aid Exporters Amid West Asia Conflict

The government introduced the RELIEF scheme with a Rs 497 crore budget to support exporters affected by the West Asia conflict. This initiative, led by the Export Credit Guarantee Corporation of India, offers export obligation extensions and logistical support to manage shipping delays, increased costs, and export risks in the region.

The government has launched the RELIEF scheme, allocating Rs 497 crore to assist exporters dealing with the disruptions caused by the ongoing conflict in West Asia. The Export Credit Guarantee Corporation of India is spearheading this initiative, aiming to mitigate the challenges exporters face due to extraordinary freight hikes and heightened insurance costs.

According to Commerce Secretary Rajesh Agarwal, the new scheme is part of the Export Promotion Mission and targets exporters in 17-18 affected geographies to alleviate export challenges. An inter-ministerial group has been established to monitor the situation daily, involving several government departments and banks to adapt to evolving conditions.

Director General of Foreign Trade Lav Agarwal noted dual logistic disruptions in air and maritime sectors, impacting perishable cargo. The RELIEF scheme, comprising three components, extends export obligations and supports MSMEs by reimbursing exceptional freight and insurance costs, thereby safeguarding India's trade resilience and competitiveness during global uncertainties.

(With inputs from agencies.)