The Indian government on Thursday launched a ₹497 crore emergency relief package to support exporters struggling with skyrocketing logistics costs and insurance premiums, which have been triggered by the escalating conflict in West Asia.
The intervention, Resilience and Logistics Intervention for Export Facilitation (RELIEF) scheme, is a time-bound measure under the broader Export Promotion Mission (EPM). It aims to stabilize trade flows specifically for shipments traversing the Strait of Hormuz and the wider Gulf maritime corridor.
Three-Tiered Support Structure
Commerce Secretary Rajesh Agrawal, while briefing the press, explained that the government is "trying to build an export package" to ensure that "in this conflict, we are trying to help exports keep going."
The scheme is divided into three distinct components managed by the Export Credit Guarantee Corporation of India (ECGC):
- Enhanced Risk Coverage: Exporters with existing ECGC credit insurance for consignments shipped between February 14 and March 15, 2026, will receive up to 100% risk coverage at no additional cost.
- Forward Support: For shipments planned between March 16 and June 15, 2026, the government will support up to 95% risk coverage to maintain exporter confidence despite maritime uncertainty.
- MSME Reimbursement: A specific component provides partial reimbursement for extraordinary freight and insurance spikes for MSME exporters who had not previously taken ECGC coverage.
Following the outbreak of hostilities involving the U.S., Israel, and Iran, global reinsurers have largely withdrawn from the region, leading to the imposition of "Emergency Conflict Surcharges" and “Additional War Risk Premiums.”
Despite the regional turmoil, the Commerce Ministry remains optimistic about hitting an annual export target of $860 billion for the current fiscal year. By offsetting the 90–100% hike in freight rates seen on key routes, the RELIEF scheme is intended to prevent a structural decline in demand for Indian engineering goods, textiles, and perishables, which have been hit hardest by the transit delays.
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