Government Launches ₹497 Crore RELIEF Scheme to Shield Exporters from West Asia Fallout

The Union government took its most significant and comprehensive step yet to protect Indian exporters from the economic fallout of the West Asia conflict, launching the ₹497 crore RELIEF scheme — an acronym for Resilience and Logistics Intervention for Export Facilitation — on Thursday under the Export Promotion Mission.

With ECGC Ltd (formerly Export Credit Guarantee Corporation of India) designated as the nodal implementing agency, the scheme is structured in three components designed to address different stages of the export cycle. Commerce Secretary Rajesh Agarwal, speaking at a press briefing, described the scheme as a direct response to the extraordinary freight escalation and insurance premium spike affecting exporters, particularly MSMEs, with operations linked to Gulf and West Asia markets.

Component I covers exporters who had already insured their consignments with ECGC during the period from 14 February to 15 March 2026. These exporters will receive government top-up compensation for war and political risk losses beyond the existing ECGC policy cover, while premiums will be maintained at pre-disruption levels. The estimated outlay for this component is ₹56 crore. Component II targets fresh exports from 16 March to 15 June 2026, offering government-backed coverage of up to 95 per cent for new shipments to the affected region at stable premium rates — a crucial assurance for exporters planning forward shipments. The estimated allocation here is ₹159 crore.

The largest slice of the scheme — ₹282 crore — is reserved for Component III, aimed squarely at MSME exporters who may not have had ECGC insurance coverage but are nonetheless bearing extraordinary freight and insurance surcharge burdens. These businesses will be eligible for partial reimbursement of up to 50 per cent of additional costs incurred. The scheme applies to consignments destined for the UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel, and Yemen.

Officials said an inter-ministerial group comprising the Commerce Ministry, the Ministry of Petroleum and Natural Gas, Ports and Shipping, the Department of Financial Services, and the Ministry of External Affairs has been set up to coordinate India’s response to the crisis. The government also announced automatic extensions for Advance Authorisations and EPCG authorisations that fall due between 1 March and 31 May 2026, giving exporters an extended window until 31 August 2026 to fulfil export obligations without penalty.