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Amid tensions in West Asia, Govt launches RELIEF scheme for exporters
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Monday, 23 March, 2026, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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In an emergency response to escalating geopolitical tensions in West Asia, the Indian government officially launched the RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme. This Rs. 497 crore initiative aims to provide a critical safety net for exporters facing surging insurance premiums and disrupted shipping routes through the Gulf and the Strait of Hormuz.
The scheme, implemented by the Export Credit Guarantee Corporation (ECGC), arrives as global insurers pull back from the region, leaving Indian shipments vulnerable.
RELIEF is structured into three components to ensure liquidity and risk mitigation covering consignments destined to countries in the region such as United Arab Emirates, Saudi Arabia, Kuwait, Israel, Qatar, Oman, Bahrain, Iraq, Iran and Yemen, meant either for delivery or for transshipment.
The component include, firstly shipments made during the peak of the recent disruptions (mid-February to mid-March) will receive up to 100% risk coverage at pre-crisis rates, secondly new shipments through June 15, 2026, are eligible for 95% coverage, and thirdly in case of small businesses, the government will reimburse 50% of extraordinary freight and insurance costs, capped at ?50 lakh per exporter.
In a statement, the Ministry of Commerce stated, “Through RELIEF, the Government aims to mitigate the immediate impact of logistics disruptions, protect exporter confidence, prevent order cancellations and safeguard employment in export-linked sectors. The intervention also reinforces India’s commitment to maintaining resilience and competitiveness in global trade during periods of uncertainty.”
S C Ralhan, president, Federation of Indian Export Organisations (FIEO), has welcomed the Government’s announcement of the RELIEF (Resilience & Logistics Intervention for Export Facilitation) initiative under the Export Promotion Mission, aimed at supporting exporters impacted by the ongoing disruptions in West Asia maritime trade routes.
FIEO noted that the recent developments around the Strait of Hormuz and the wider Gulf region have led to significant challenges including vessel diversions, increased transit time, congestion at transshipment hubs and steep increases in freight and insurance costs. These disruptions have created considerable uncertainty for Indian exporters, particularly those with exposure to the region.
President FIEO stated that the RELIEF initiative will go a long way in somewhat mitigating the immediate impact of logistics disruptions.
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