RELIEF Scheme: A Lifeline for Indian Exporters Amid West Asia Disruptions
In response to rising geopolitical tensions and disruptions in the West Asia maritime corridor, the Government of India has introduced the RELIEF Scheme (Resilience & Logistics Intervention for Export Facilitation). This initiative aims to support Indian exporters grappling with soaring freight costs, increased insurance premiums, and heightened risks due to conflict in the Gulf region.
About RELIEF Scheme
The RELIEF Scheme stands for Resilience & Logistics Intervention for Export Facilitation under the Export Promotion Mission (EPM). It is a time-bound and targeted intervention designed to ensure continuity in India’s export ecosystem during external shocks.
The nodal agency for implementing the scheme is the Export Credit Guarantee Corporation of India (ECGC), which operates under the Ministry of Commerce & Industry.
Objective of RELIEF Scheme
The primary objective of the scheme is to provide immediate support to exporters affected by:
- Extraordinary escalation in freight costs
- Heightened insurance premiums
- War-related risks impacting shipments
These disruptions are largely due to instability in the Gulf and wider West Asia maritime routes. The scheme reflects the government’s commitment to safeguarding India’s trade flows and ensuring exporter confidence during uncertain global conditions.
Key Features of RELIEF Scheme
1. Enhanced Risk Coverage (Past Shipments)
- Exporters with existing ECGC cover for shipments between 14 February and 15 March 2026
- Eligible for up to 100% risk coverage for additional conflict-related losses
2. Support for Prospective Exports
- Applicable for shipments from 16 March to 15 June 2026
- Provides up to 95% risk coverage to encourage continued export activity
3. MSME Reimbursement Support
- Special focus on MSMEs (Micro, Small & Medium Enterprises)
- Non-insured exporters can claim:
- 50% reimbursement of additional freight and insurance costs
- Maximum cap: ₹50 lakh per exporter
4. Regional Scope
The scheme covers consignments destined for or transiting through key Gulf and West Asian countries, including:
- United Arab Emirates
- Saudi Arabia
- Kuwait
- Israel
- Qatar
- Oman
- Bahrain
- Iraq
- Iran
- Yemen
Operational Relief Measures
To further ease the burden on exporters, the scheme includes:
- Waiver of storage and dwell time charges at ports
- Procedural relaxations for stranded cargo
- Coordination through an Inter-Ministerial Group (IMG)
Monitoring and Implementation
- ECGC will maintain a dashboard-based monitoring system
- Enables real-time tracking of claims and fund utilization
- Ensures transparency and efficiency in implementation
Budget Allocation
The scheme has a financial outlay of ₹497 crore, ensuring sufficient support for exporters during the disruption period.
Review Mechanism
The EPM Steering Committee will periodically review the scheme based on evolving geopolitical conditions. It may recommend:
- Modifications
- Extension
- Withdrawal
depending on the situation.
Impact of RELIEF Scheme
The RELIEF Scheme is expected to:
- Stabilize India’s export sector during crisis
- Protect MSMEs from sudden cost shocks
- Maintain global trade competitiveness
- Strengthen confidence among exporters
