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Dated: 20.03.2026
RELIEF: Resilience & Logistics Intervention for Export Facilitation under Export Promotion Mission
The Gulf and West Asia region has long been a strategically significant trade corridor for India, contributing substantially to the nation’s merchandise exports. β However, recent geopolitical developments, including heightened tensions involving Iran and disruptions in the Strait of Hormuz and the Gulf maritime corridor, have led to significant challenges for Indian exporters. β These challenges include increased outbound logistics costs, vessel diversions, longer maritime routes, higher insurance premiums, and congestion at regional transshipment hubs. β To address these issues, the Government of India has launched a time-limited intervention under the Export Promotion Mission (EPM), titled RELIEF – Resilience & Logistics Intervention for Export Facilitation. β
Objectives of RELIEF
The RELIEF initiative aims to mitigate the adverse impacts of geopolitical disruptions on Indian exporters by providing targeted support. β The intervention is designed to:
- Ensure the continuity of India’s exports to Gulf and West Asia markets during the disruption period. β
- Reduce the financial burden of extraordinary freight and insurance costs on exporters. β
- Prevent export order cancellations and supply chain disruptions. β
- Protect employment and value chains in export sectors. β
Key Components of RELIEF β
The RELIEF intervention comprises three complementary components, each addressing specific challenges faced by exporters:
Component-I: Export Credit Support for ECGC’s Already Insured Exporters β
This component is targeted at exporters who have already obtained credit insurance coverage from the Export Credit Guarantee Corporation of India (ECGC). β Key features include:
- Eligibility Period: Shipments with onboard bill of lading or airway bill issued between February 14, 2026, and March 15, 2026. β
- Coverage: Shipments destined for delivery or transshipment to countries in the Gulf and West Asia region, including UAE, Saudi Arabia, Israel, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, and Yemen. β
- Support: Enhanced coverage of up to 100% of losses arising due to war-related and political risks. β
- Premium Stability: ECGC will ensure that premiums for insured exporters remain at pre-disruption levels during the eligible period. β
- Exclusions: Back-to-town cargo cases are not eligible for reimbursement under this component. β
- Budget Allocation: βΉ56 crores have been allocated to enable ECGC to extend compensation up to 100% of loss, over and above the coverage ordinarily admissible under the relevant policy. β
Component-II: Encouraging ECGC Coverage for Upcoming Exports β
This component is designed to encourage exporters to opt for ECGC’s credit insurance cover for upcoming consignments to the affected Gulf and West Asia region. β Key features include:
- Eligibility Period: Shipments with onboard bill of lading or airway bill issued between March 16, 2026, and June 15, 2026. β
- Coverage: Shipments destined for delivery or transshipment to specified countries in the Gulf and West Asia region. β
- Support: Enhanced coverage of up to 95% of losses due to war-related and political risks. β
- Premium Stability: ECGC will ensure that premiums remain at pre-disruption levels during the eligible period. β
- Exclusions: Back-to-town cargo cases are not eligible for reimbursement under this component. β
- Budget Allocation: βΉ159 crores have been allocated to enable ECGC to extend compensation up to 95% of loss, over and above the coverage ordinarily admissible under the relevant policy. β
Component-III: Reimbursement Support for Non-ECGC-Insured MSME Exporters β
This component aims to support MSME exporters who have not availed ECGC coverage and are facing extraordinary logistics costs due to conflict-related surcharges. β Key features include:
- Eligibility Period: Shipments with onboard bill of lading issued between February 14, 2026, and March 15, 2026. β
- Coverage: Shipments destined for delivery or transshipment to specified countries in the Gulf and West Asia region. β
- Support:
- For CIF contracts, reimbursement of up to 50% of additional freight and insurance costs borne by the exporter. β
- For FOB contracts, reimbursement of up to 50% of the reduction in realised export proceeds due to extraordinary surcharges. β
- Exclusions: Back-to-town cargo cases are not eligible under this component. β
- Budget Allocation: βΉ282 crores have been allocated for this component, with a maximum assistance of βΉ50 lakh per exporter.
Implementation and Monitoring β
The Export Credit Guarantee Corporation of India (ECGC) has been designated as the nodal and implementing agency for the RELIEF intervention. β ECGC will handle disbursement, verification, and claims processing in accordance with government-approved guidelines. β Key implementation measures include:
- Real-time monitoring of claims processed and available funds through a dedicated dashboard. β
- Claims processed in order of receipt, subject to eligibility, verification, and budget availability. β
- Total government liability under the intervention capped at βΉ497 crores, as per the approved budgetary allocation under the Export Promotion Mission. β
Impact of RELIEF
The RELIEF initiative is expected to provide much-needed support to Indian exporters during a challenging period. β By addressing elevated export risks and reducing financial burdens, the intervention will help ensure the stability of India’s export sector, protect jobs, and maintain supply chain continuity. β The EPM Steering Committee will continuously review the program and recommend modifications, extensions, or withdrawal based on evolving geopolitical conditions. β
Conclusion
The RELIEF initiative is a testament to the Government of India’s commitment to supporting its exporters in times of crisis. β By providing targeted and time-limited assistance, the program aims to mitigate the impact of geopolitical disruptions and ensure the resilience of India’s export sector. β Exporters are encouraged to take advantage of the support provided under RELIEF to navigate these challenging times and continue contributing to India’s economic growth.
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Source: DGFT
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