Centre launches Rs 497 crore RELIEF scheme to support exporters amid West Asia conflict
Government introduces three-tier support package to offset logistics disruptions, rising costs, and trade risks across key Gulf corridors.
In a bid to ease the pressure on Indian exporters currently grappling with the ongoing West Asia conflict, the Centre on Thursday (March 19) launched the RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme with an outlay of Rs 497 crore.
Speaking to reporters, Secretary in the Commerce Ministry Rajesh Agarwal said that the new scheme was being launched under the Export Promotion Mission.
"We are announcing a new scheme under the Export Promotion mission, especially focused upon exporters exposed to these 17-18 geographies which have been impacted by the conflict to assuage some of the challenges that our exporters are facing,” said the Commerce Secretary.
Inter-ministerial coordination
Elaborating further, the official said that the government has also set up an inter-ministerial group (IMG) has been set up comprising various government departments, including the commerce ministry, Ministry of Petroleum and Natural Gas, Ports and Shipping, Department of Financial Services, Ministry of External Affairs, the RBI, CBIC, etc, which meets daily to assess the evolving situation based on cargo movement.
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The package under the RELIEF scheme, with ECGC (Export Credit Guarantee Corporation of India) as the implementing agency, includes automatic extension of export obligations, logistical support, and potential financial measures to manage shipping delays.
The RELIEF scheme mainly includes consignments destined for delivery or trans-shipment to the UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel, and Yemen.
Three-tier relief measures for exporters
The scheme has three key components. Component I includes Export Obligation Extensions: Automatic extension for Advance Authorisations and EPCG authorisations (due between March 1 and May 31, 2026) until August 31, 2026, without penalty. It protects already insured shipments by ECGC in the immediate one-month window from February 14 to March 15.
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Component II is aimed at encouraging and facilitating ECGC coverage for upcoming export consignments over three months from March 16 to June 15.
The Component III specifically targets MSMEs to shield them from surcharge shocks and partly reimburses extraordinary freight and insurance costs over one month period from February 14 to March 15. It is applicable to MSME exporters who have not taken ECGC coverage.
Trade exposure and disruption in key corridor
Later in the day, Chief of the Directorate General of Foreign Trade, Lav Agarwal, told reporters that the intervention was driven by the corridor’s significance to India’s trade flows. “The intervention is necessary because this corridor matters for India… Trade through this corridor amounts to around USD 178 billion… nearly 15 per cent of our global trade is linked to this particular territory,” he said, pointing to exposure across the Gulf and beyond.
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He noted that disruptions stemming from the Strait of Hormuz had triggered cascading effects. “This scheme is being launched to address challenges such as maritime logistics disruptions… increased war-risk premiums… higher logistics costs… and congestion at trans-shipment hubs,” he said as quoted by ANI.
The scheme, limited in duration, is structured in three parts—support for existing ECGC-covered shipments, facilitation for upcoming exports over three months, and targeted relief for MSMEs caught mid-transit without coverage. Coverage has been widened to include risks such as contract repudiation, voyage diversion, and payment delays, with full protection extended to shipments between February 14 and March 15.
Logistics strain and ongoing monitoring
Detailing the scale of disruption, Lav Agarwal added: “Hormuz is the exit corridor for Gulf cargo… this was a dual shock, as both air cargo and maritime cargo were affected.” He said congestion, rerouting, and cost spikes had strained exporters, particularly MSMEs. An inter-ministerial group, he noted, has been meeting daily since March 3 to coordinate the response.
(With agency inputs)