RELIEF Scheme: Export Insurance Support Amid West Asia Crisis

The Government has launched the ₹497 crore Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme in the wake of the West Asian Crisis.

• It has been approved under the Export Promotion Mission (EPM).

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About RELIEF Scheme

• Objective: To provide credit insurance cover for exporters whose goods are stranded due to the West Asia crisis.
• Insurance Premium: The insurance premiums under this scheme would be at pre-conflict rates and the focus would be MSME beneficiaries. 
• Nodal Ministry: Ministry of Commerce & Industry
• Implementing Agency: ECGC Ltd. (Formerly Export Credit Guarantee Corporation of India Ltd.)
  • It is responsible for verification, claim processing, disbursement and monitoring.
• Coverage: It covers both eligible past shipments and prospective exports, with a strong focus on MSME support.
• Funding: Intervention will be funded under EPM and reviewed periodically based on geopolitical developments.
• Regional Scope: Applies to all consignments destined for or transshipped through the UAE, Saudi Arabia, Kuwait, Israel, Qatar, Oman, Bahrain, Iraq, Iran, and Yemen.

Key Components

• Component I: Automatic export obligation relief and protection for existing shipments
  • Enhanced Risk Coverage (Past Shipments): Exporters with existing ECGC cover for shipments between 14 February and 15 March 2026 receive up to 100% risk coverage for additional conflict-linked losses.
  • Estimated Support: 56 Crore
• Component II: Enhanced ECGC cover for upcoming exports
• • Support for Prospective Exports: For shipments planned between 16 March and 15 June 2026, the government supports up to 95% risk coverage to maintain exporter confidence.
  • Estimated Support: 159 Crore
• Component III: MSME support for freight and insurance shock
  • MSME Reimbursement: Non-insured MSME exporters can claim up to 50% reimbursement (capped at ₹50 lakh per exporter) for extraordinary freight and insurance surcharges incurred during the initial disruption month.
  • Estimated Support: 282 Crore

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Why was the RELIEF Scheme Launched?

• Heightened geopolitical tensions in West Asia disrupted maritime routes, especially around the Strait of Hormuz.
• Security concerns led to vessel diversions and longer shipping routes, increasing transit time and uncertainty.
• Congestion at transshipment hubs created delays in export consignments.
• Freight costs surged sharply due to rerouting and limited shipping availability.
• Insurance premiums increased because of war-related risks in the Gulf region.
• Operational uncertainty for exporters rose due to unpredictable logistics conditions.
• Export competitiveness of Indian goods was threatened due to rising logistics costs.

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