RELIEF Scheme

The Government of India has approved the RELIEF (Resilience & Logistics Intervention for Export Facilitation) Scheme to support Indian exporters who are facing severe disruptions in international trade routes, particularly in West Asia. These disruptions have led to sharp increases in freight charges, higher insurance costs, and war-related export risks, especially in the Gulf and surrounding maritime corridors.

The scheme is a time-bound intervention introduced under the broader Export Promotion Mission (EPM) to ensure that Indian exporters, including MSMEs, remain competitive despite global uncertainties.

About the RELIEF Scheme

The RELIEF Scheme is designed to provide financial and logistical support to exporters affected by extraordinary disruptions in maritime trade routes. It aims to maintain export continuity and reduce financial losses arising from geopolitical tensions in West Asia.

The scheme specifically targets exporters impacted by conditions such as war-related risks, shipping delays, and insurance premium spikes, thereby acting as a stabilization mechanism for India’s export ecosystem.

Key Features of the Scheme

Enhanced Risk Coverage for Past Shipments

Exporters who already have Export Credit Guarantee Corporation (ECGC) insurance coverage for shipments made between 14 February and 15 March 2026 will receive up to 100% risk coverage for additional losses linked to conflict situations. This ensures complete protection for already affected consignments.

Support for Future Exports

For shipments scheduled between 16 March and 15 June 2026, the government will provide up to 95% risk coverage. This measure is intended to restore exporter confidence and ensure continuity of trade flows despite ongoing uncertainties.

MSME Reimbursement Support

For non-insured MSME exporters, the scheme provides reimbursement of up to 50% of extraordinary freight and insurance surcharges, with a maximum cap of ₹50 lakh per exporter. This is particularly important for small exporters who are more vulnerable to global shocks.

Regional Scope of Coverage

The scheme applies to exports and transshipment routes involving key countries in West Asia, including the UAE, Saudi Arabia, Kuwait, Israel, Qatar, Oman, Bahrain, Iraq, Iran, and Yemen. These regions are critical for India’s energy trade, exports, and logistics networks.

Operational Relief Measures

The scheme also provides logistical and procedural relief, including waivers of storage and dwell time charges at ports for stranded cargo. These measures are coordinated by an Inter-Ministerial Group (IMG) to ensure smooth execution and reduced burden on exporters.

Real-Time Monitoring System

The Export Credit Guarantee Corporation (ECGC) will maintain a digital dashboard-based monitoring system to track claims and fund utilization. Regular reviews will be conducted by the Export Promotion Mission (EPM) Steering Committee, ensuring transparency and accountability.

Implementation Mechanism

The scheme will be implemented through ECGC Ltd, which will act as the nodal agency for processing claims, providing insurance support, and coordinating with exporters and government bodies.

Significance of the Scheme

The RELIEF Scheme is significant because it provides immediate financial cushioning to exporters during geopolitical disruptions, ensuring that India’s export sector remains resilient. It strengthens risk management in international trade, supports MSMEs, and helps maintain India’s competitiveness in global markets despite external shocks.

Conclusion

The RELIEF Scheme represents a targeted and strategic response to global trade disruptions in West Asia. By combining insurance coverage, financial support, and logistical relief, the scheme aims to safeguard India’s exporters and ensure the stability and continuity of export-led growth in uncertain geopolitical conditions.