Govt rolls out ₹497 crore RELIEF scheme to shield exporters from West Asia crisis
Government-backed exporters can get up to 95% additional risk coverage from March 16 to June 15, 2026, to maintain trade operations amid uncertainty.
The Ministry of Commerce & Industry has approved the Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme, a time-bound initiative aimed at addressing severe logistics constraints and rising freight costs. This ₹497 crore intervention, approved on March 19, is designed to sustain export flows amidst the current global supply chain uncertainty.
Introduced under the Export Promotion Mission (EPM), the initiative acknowledges the extraordinary financial strain placed on exporters by war-related risks and skyrocketing insurance premiums in the region.
The scheme provides targeted financial support, addressing both past disruptions and planned shipments for the next quarter. For retrospective coverage spanning February 14 to March 15, 2026, exporters with existing credit insurance are eligible for up to 100% additional risk coverage for shipments made during this critical disruption period.
Looking ahead, from March 16 to June 15, 2026, exporters can secure up to 95% additional risk coverage, backed by government support, to sustain trade amidst ongoing uncertainty. Critically, the program offers a lifeline for uninsured MSME exporters impacted during the disruption, allowing them to claim up to a 50% reimbursement on freight and insurance surcharges, provided they meet specific conditions, with a cap of ₹750 lakh per exporter.
The RELIEF scheme is the latest in a series of proactive measures. On March 2, the government established an inter-ministerial group (IMG) on supply chain resilience. Through daily reviews with ministries, financial institutions, and logistics stakeholders, the IMG has already rolled out procedural relaxations for stranded cargo, waived various storage charges, and initiated steps to improve transparency in shipping prices.
To ensure smooth execution, ECGC Ltd. has been appointed as the nodal agency responsible for verification, processing claims, and disbursing funds.
The government will track fund utilisation and claim processing through a dedicated digital dashboard. Meanwhile, the EPM Steering Committee will conduct periodic reviews of the scheme to adapt to any new developments in West Asia.
According to a government statement, the intervention is explicitly intended to "support Indian exporters affected by extraordinary freight escalation, heightened insurance premiums, and war-related export risks," ultimately limiting the fallout on domestic trade and employment.
