Why in news?
The Government of India has launched the RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme to assist exporters facing unprecedented freight surcharges, insurance costs and risk due to maritime disruptions in West Asia. The ongoing crisis around the Strait of Hormuz has forced vessels to take longer routes, raising costs and delaying deliveries, prompting the government to introduce a calibrated support package.
Background
Since late 2025 rising tensions in the Gulf region and attacks on commercial shipping have disrupted key shipping lanes. As a result freight rates and insurance premiums for consignments passing through the Gulf and wider West Asian corridor have surged. Small and medium‑sized exporters, particularly those shipping to the United Arab Emirates, Saudi Arabia, Oman, Qatar, Kuwait, Bahrain, Iraq, Iran, Israel and Yemen, have faced stranded cargoes and mounting costs. RELIEF is a time‑bound intervention under the Export Promotion Mission designed to maintain export momentum during the crisis.
Key features
- Enhanced risk coverage (past shipments): Exporters with existing Export Credit Guarantee Corporation (ECGC) insurance for shipments between 14 February and 15 March 2026 will receive up to 100 percent coverage for additional losses linked to the conflict.
- Support for upcoming consignments: For shipments planned from 16 March to 15 June 2026, exporters can obtain ECGC insurance with government support covering up to 95 percent of war‑related risks. Premium rates will be kept at pre‑disruption levels.
- Reimbursement for uninsured MSMEs: Micro, small and medium‑sized exporters who did not have ECGC cover for shipments between 14 February and 15 March 2026 can claim reimbursement of up to 50 percent of additional freight and insurance charges, subject to a cap of ₹50 lakh per exporter.
- Geographical coverage: The scheme applies to cargo destined for or transshipped through Gulf and West Asian countries, including full container loads, partial loads and refrigerated cargo. It excludes “back‑to‑town” cargo that returns to India without delivery.
- Operational relief: An inter‑ministerial group on supply‑chain resilience coordinates waivers of storage and dwell‑time charges at Indian ports, procedural relaxations for stranded cargo and real‑time monitoring of claims through an online dashboard.
Significance
- Maintaining export flows: By cushioning exporters against sudden cost spikes, the scheme helps retain market share in West Asia and prevents supply chain disruptions from eroding India’s export growth.
- Supporting MSMEs: Small exporters often lack the financial muscle to absorb unforeseen expenses. Targeted reimbursement and risk coverage ensure they can continue trading without incurring crippling losses.
- Time‑bound intervention: Limiting the scheme to a few months ensures that support is focused on the crisis period and encourages businesses to resume normal insurance arrangements once stability returns.
Conclusion
The RELIEF scheme illustrates how governments can respond swiftly to external shocks by offering targeted support across the export cycle. By combining insurance cover, reimbursement and logistical facilitation, it aims to keep Indian exporters competitive during turbulent times while encouraging long‑term risk management practices.
Source: PIB
