Centre Launches ‘RELIEF’ Scheme to Shield Exporters from West Asia Shipping Disruptions

Recent developments in the Gulf region have significantly impacted India’s export supply chains, especially for shipments routed through or destined for West Asia.

In a swift response to escalating geopolitical tensions in West Asia disrupting maritime trade routes, the Government of India has unveiled a targeted support mechanism—RELIEF (Resilience & Logistics Intervention for Export Facilitation)—to protect exporters from rising logistics costs, insurance premiums, and operational uncertainties.

The intervention, approved under the Export Promotion Mission (EPM), comes amid heightened security concerns around the Strait of Hormuz, which have triggered vessel diversions, longer transit routes, congestion at transshipment hubs, and conflict-related surcharges.

Shipping Disruptions Push Up Costs, Create Uncertainty

Recent developments in the Gulf region have significantly impacted India’s export supply chains, especially for shipments routed through or destined for West Asia.

Key challenges include:

• Increased freight costs due to rerouting

• Higher insurance premiums amid war-risk conditions

• Delays and congestion at ports and transshipment hubs

• Operational uncertainty for exporters

Recognising the urgency, the government has moved to stabilise trade flows and safeguard exporter confidence, particularly for MSMEs.

Inter-Ministerial Group Monitoring Crisis Daily

A high-level Inter-Ministerial Group (IMG) on Supply Chain Resilience, operational since March 2, 2026, has been conducting daily reviews involving:

• Multiple ministries and departments

• Financial institutions

• Logistics stakeholders

• Exporter associations

Based on IMG deliberations, immediate facilitation measures have already been rolled out, including:

• Procedural relaxations for stranded cargo

• Waivers on storage and dwell time charges at ports

• Enhanced coordination across logistics networks

• Advisory on transparency in shipping pricing

• Monitoring of insurance risks and inland logistics

These measures laid the groundwork for the RELIEF intervention.

RELIEF Scheme: Covering Past and Future Shipments

The RELIEF framework is designed to support exporters across the entire disruption cycle—both past consignments and upcoming shipments.

It targets exports to key West Asian destinations, including:

• UAE, Saudi Arabia, Qatar, Oman, Kuwait, Bahrain

• Israel, Iraq, Iran, Yemen

Three-Pronged Support Mechanism

The scheme offers three complementary support measures:

1. Enhanced Risk Cover for Existing ECGC-Insured Shipments

• Applies to shipments during Feb 14 – March 15, 2026

• Provides up to 100% risk coverage, over and above existing ECGC cover

• No additional financial burden on exporters

2. Support for Upcoming Exports

• Covers shipments planned between March 16 – June 15, 2026

• Offers up to 95% risk coverage with government backing

• Encourages continuity in export flows despite uncertainty

3. Relief for Uninsured MSME Exporters

• For MSMEs without ECGC cover during disruption period

• Provides up to 50% reimbursement of freight and insurance surcharges

• Subject to a cap of ₹50 lakh per exporter

• Based on verification and prescribed conditions

ECGC to Lead Implementation

The government has designated ECGC Ltd. (Export Credit Guarantee Corporation of India) as the nodal implementing agency, responsible for:

• Verification and claim processing

• Disbursement of assistance

• Monitoring and reporting

Leveraging its expertise in covering commercial and political risks, including war-related contingencies, ECGC is expected to ensure timely and credible execution.

₹497 Crore Outlay with Real-Time Monitoring

The RELIEF initiative will be implemented with an approved financial outlay of ₹497 crore under the Export Promotion Mission.

Key oversight features include:

• Dashboard-based monitoring system for real-time tracking

• Periodic review by the EPM Steering Committee

• Scope for modification, continuation, or withdrawal based on evolving geopolitical conditions

Protecting Trade, Jobs, and Economic Stability

The government said the intervention aims to:

• Mitigate immediate logistics disruptions

• Prevent order cancellations

• Maintain export competitiveness

• Safeguard employment in export-linked sectors

By cushioning exporters against external shocks, RELIEF reinforces India’s commitment to resilient and stable global trade participation, even amid geopolitical volatility.