India Launches RELIEF Scheme to Support Exporters Amid Gulf Disruptions

RELIEF Initiative Boosts Export Resilience During West Asia Crisis

The Government of India has introduced the RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme under the Export Promotion Mission to assist exporters affected by disruptions in West Asia. The move comes amid rising geopolitical tensions impacting shipping routes near the Strait of Hormuz, a critical corridor for global trade and energy supplies.

Background of Logistics Disruptions

Security concerns in the Gulf region have led to vessel diversions, longer shipping routes, congestion at ports, and increased war-risk surcharges. These disruptions have significantly raised freight and insurance costs, affecting Indian exports moving through West Asia and creating operational uncertainty.

Government’s Coordinated Response

An Inter-Ministerial Group (IMG) on Supply Chain Resilience was activated on 2 March 2026 to manage the situation. Regular reviews involve multiple ministries, financial institutions, and industry stakeholders. Key measures include procedural relaxations, waivers on port storage charges, improved coordination among ports, and monitoring of freight rates and insurance risks.

Key Features of RELIEF Scheme

The RELIEF scheme provides targeted support across the export cycle. Exporters with insurance from Export Credit Guarantee Corporation of India for shipments between 14 February and 15 March 2026 are eligible for up to 100% additional risk coverage. For shipments from 16 March to 15 June 2026, up to 95% coverage is available with government backing. MSME exporters without insurance will receive up to 50% reimbursement of freight and insurance surcharges, capped at ₹50 lakh. ECGC Ltd acts as the nodal agency.

Objective and Financial Outlay

The scheme has an outlay of ₹497 crore and will be monitored through a digital dashboard for real-time tracking. Periodic reviews by the Export Promotion Mission Steering Committee will ensure responsiveness to evolving geopolitical conditions. The initiative aims to sustain exporter confidence, prevent order losses, and maintain India’s global trade competitiveness.

Exam-Focused Points

• RELIEF scheme under Export Promotion Mission (EPM) .

• Target: exporters affected by West Asia disruptions .

• Nodal agency: ECGC Ltd .

• Coverage: 100% (past shipments), 95% (future shipments) .

• MSME support: 50% reimbursement (₹50 lakh cap) .

• Outlay: ₹497 crore .

• Linked to disruptions near Strait of Hormuz .