₹497 crore RELIEF scheme launched to cushion exporters hit by West Asia disruptions

The Centre on March 19 launched a ₹497 crore support package, titled RELIEF (Resilience and Logistics Intervention for Export Facilitation), to assist Indian exporters affected by disruptions caused by the ongoing West Asia conflict.

Announced under the Export Promotion Mission, the scheme aims to stabilise export flows and protect India’s market share at a time when geopolitical tensions have impacted key maritime routes and increased logistics costs.

Officials said exporters have been facing challenges such as delays in shipments, rising freight charges and higher insurance premiums, particularly for consignments moving through the Gulf region and the Strait of Hormuz.

The scheme will be implemented through the Export Credit Guarantee Corporation of India (ECGC) and is designed as a time-limited intervention to address elevated risks in the current trade environment.

RELIEF comprises multiple components aimed at easing pressure on exporters. These include protection for shipments already insured during the disruption period, support for future consignments through enhanced insurance cover, and partial reimbursement of increased freight and insurance costs, especially for MSMEs.

A significant portion of the outlay has been earmarked for small and medium exporters who are particularly vulnerable to rising costs and cash flow disruptions.

The move comes as trade through the West Asia corridor faces severe strain due to conflict-related risks, including higher war-risk premiums, rerouting of vessels and congestion at trans-shipment hubs.

Government officials said the objective is to ensure continuity of exports and prevent order cancellations during the crisis, while providing exporters with the financial and logistical support needed to navigate the disruption.

The scheme is expected to remain in place for a limited period and may be reviewed depending on how the geopolitical situation evolves.