What is RELIEF scheme?

• The government launched the RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme with an outlay of Rs 497 crore to provide relief to India’s exporters facing disruptions due to the ongoing West Asia conflict.

What is the significance of RELIEF scheme?

• Recent developments, including heightened security concerns around the Strait of Hormuz, have led to vessel diversions, longer sailing routes, congestion at trans-shipment hubs and emergency conflict-linked surcharges. 

• These developments have increased logistics costs and created operational uncertainty for export consignments moving to or through the region.

• An inter-ministerial group has been set up comprising various government departments, including the Ministry of Commerce & Industry, Ministry of Petroleum and Natural Gas, Ports and Shipping, Department of Financial Services, Ministry of External Affairs, Reserve Bank of India (RBI), Central Board of Indirect Taxes and Customs (CBIC), etc, which meets daily to assess the evolving situation based on cargo movement.

• In view of the evolving geopolitical situation in West Asia and its impact on maritime logistics across the Gulf region, the government has approved a time-bound and targeted intervention. 

• The RELIEF scheme is aimed at supporting Indian exporters affected by extraordinary freight escalation, heightened insurance premiums and war-related export risks arising from disruptions in the Gulf and wider West Asia maritime corridor.

How will it be implemented?

• RELIEF has been structured to provide support across the export cycle by covering the shipments already left  during the disruption period as well as prospective exports planned to the affected region.

• ECGC Ltd (formerly Export Credit Guarantee Corporation of India Ltd), under the Ministry of Commerce & Industry, has been designated as the nodal and implementing agency.

• It is responsible for verification, claim processing, disbursement and monitoring. 

• ECGC’s established experience in providing export credit risk cover against commercial and political risks, including war-related contingencies, is expected to ensure credible and timely delivery of assistance.

• The RELIEF scheme comprises three complementary components covering consignments destined to countries in the region such as United Arab Emirates, Saudi Arabia, Kuwait, Israel, Qatar, Oman, Bahrain, Iraq, Iran and Yemen, meant either for delivery or for trans-shipment.

The three components are:

i) Exporters who have already obtained ECGC credit insurance cover for eligible consignments will benefit from up to 100 per cent risk coverage, over and above the existing ECGC cover, during the eligible period (February 14, 2026 till March 15, 2026), thereby ensuring enhanced protection without additional financial burden.

ii) Exporters planning upcoming consignments, during the next three months (March 16, 2026 till June 15, 2026), will be encouraged to obtain ECGC cover with Government support for up to 95 per cent risk coverage, over and above the existing ECGC cover, which will help sustain exporter confidence and facilitate continued shipment flows despite logistics uncertainties.

iii) Recognising that some MSME exporters may not have availed credit insurance (February 14, 2026 till March 15, 2026), but are facing extraordinary freight and insurance surcharge burdens, RELIEF includes a partial reimbursement (up to 50 per cent) mechanism for eligible non-ECGC-insured MSME exporters. This support will be extended subject to prescribed conditions, documentary verification and notified ceilings (up to Rs 50 lakh per exporter), and is intended to provide timely relief against conflict-related logistics cost escalation.

• Implementation of RELIEF under Export Promotion Mission will be undertaken with an approved financial outlay of Rs 497 crore. 

• ECGC will maintain a dashboard-based monitoring system to enable real-time tracking of claims and fund utilisation. 

• The EPM Steering Committee will periodically review the operation of the intervention in light of evolving geopolitical conditions and may recommend calibrated modification, continuation or withdrawal as necessary.

• Through RELIEF, the government aims to mitigate the immediate impact of logistics disruptions, protect exporter confidence, prevent order cancellations and safeguard employment in export-linked sectors.