Govt Approves RELIEF Initiative to Support Exporters

On 19th March 2026, the Government of India approved a new intervention titled RELIEF (Resilience & Logistics Intervention for Export Facilitation) under the Export Promotion Mission (EPM) to support exporters affected by geopolitical tensions in West Asia.

Key Points

Background: Rising tensions around the Strait of Hormuz have led to longer shipping routes, higher freight and insurance costs, and congestion at transshipment hubs.
Objective: The RELIEF initiative aims to mitigate logistics disruptions, reduce financial stress on exporters, and ensure continuity of trade flows.
Implementation Agency: Export Credit Guarantee Corporation of India (ECGC) will act as the nodal agency for claim processing, verification, and monitoring.
Enhanced Insurance Coverage: Exporters with existing ECGC cover will receive up to 100% risk coverage for shipments between Feb 14 and Mar 15, 2026, at no extra cost.
Support for Future Shipments: Shipments between Mar 16 and June 15, 2026, will be eligible for up to 95% risk coverage with government backing.
MSME Relief: Small exporters without ECGC coverage can claim up to 50% reimbursement of increased freight and insurance costs, capped at ₹50 lakh.
Geographical Coverage: Applies to exports to Gulf and West Asian countries including UAE, Saudi Arabia, Qatar, Oman, Kuwait, Bahrain, Iraq, Iran, Israel, and Yemen.
Financial Outlay: ₹497 crore allocated under the Export Promotion Mission.
Institutional Mechanism: An Inter-Ministerial Group (IMG) on Supply Chain Resilience is conducting daily reviews and coordinating measures like waivers on port charges and procedural relaxations.