The Centre on Thursday launched the Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme with an outlay of Rs. 497 crore (US $53.36 million) to assist Indian exporters grappling with disruptions arising from the ongoing conflict in the Middle East. The move is aimed at cushioning the impact of escalating freight costs, higher insurance premiums and shipping delays.
Introduced under the Export Promotion Mission, the scheme will be implemented by the Export Credit Guarantee Corporation of India (ECGC). It is designed to support exporters exposed to conflict-affected markets across key Gulf and Middle Eastern geographies.
Commerce Secretary Rajesh Agarwal stated that the initiative specifically targeted exporters operating in around 17–18 affected regions, noting that the scheme was intended to mitigate the challenges they were currently facing.
To monitor the evolving situation, the government has constituted an inter-ministerial group comprising representatives from multiple departments, including commerce, petroleum and natural gas, ports and shipping, financial services, external affairs, the Reserve Bank of India and the Central Board of Indirect Taxes and Customs. The group is meeting daily to assess cargo movement disruptions and determine whether further intervention is required. The Commerce Secretary acknowledged that the Middle East conflict had significantly impacted trade flows and created operational challenges, adding that the government was engaging closely with stakeholders and responding dynamically to emerging issues.
The RELIEF scheme primarily covers consignments destined for or transiting through key regional markets, including the UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel and Yemen. The urgency of the intervention stems from disruptions around the Strait of Hormuz, which have led to additional war-risk premiums and emergency surcharges on maritime cargo. Freight rates on critical routes had previously surged by nearly 90%–100% during the 2023–24 Red Sea crisis, with similar pressures now affecting exporters—particularly micro, small and medium enterprises (MSMEs).
The scheme comprises three components. The first provides an automatic extension of export obligations for Advance Authorisations and EPCG authorisations due between 1st March and 31st May 2026, extending deadlines to 31st August 2026 without penalty. It also enhances compensation for war and political risk losses for shipments already insured by ECGC between 14th February and 15th March 2026, while maintaining pre-disruption premium levels. This component carries an estimated allocation of Rs. 56 crore (US $).
The second component focuses on upcoming consignments between 16th March and 15th June 2026. It offers stable premiums and enhanced insurance cover of up to 95% for new shipments to affected regions, with an estimated outlay of Rs. 159 crore (US $17.07 million).
The third and largest component targets MSME exporters without ECGC coverage. It provides partial reimbursement—up to 50%—of extraordinary freight and insurance costs incurred between 14th February and 15th March 2026. This segment has been allocated Rs. 282 crore (US $30.27 million), reflecting its focus on shielding smaller exporters from sudden cost escalations.
The Commerce Secretary emphasised that the scheme was not merely a relief measure but a strategic effort to preserve India’s export competitiveness in key overseas markets. He noted that India’s exports played an important role in these economies and that the government was working to ensure continuity of trade despite difficult conditions.
ECGC will maintain a real-time monitoring dashboard for claims processing and fund utilisation, while an Export Promotion Mission Steering Committee will oversee implementation and reallocate funds if required.
Industry stakeholders have welcomed the move. Ashwin Chandran, Chairman of the Confederation of Indian Textile Industry (CITI), stated that the scheme would provide much-needed relief to the MSME-dominated textiles and apparel sector, which had already faced significant challenges in the current financial year due to global volatility. He added that timely implementation would be critical to ensuring exporters in the sector benefit effectively.
He further observed that a substantial portion of India’s textile and apparel exports is directed towards West Asia, with the UAE among the largest markets in the region. Rising logistics and insurance costs, he noted, were particularly burdensome for exporters operating on thin margins, as they increased operational expenses and affected the ability to meet contractual commitments.
