Govt Extends Export Risk Cover to September 30

India has extended enhanced insurance cover for exporters shipping to West Asia until September 30, 2026, the Directorate General of Foreign Trade (DGFT) said in a notification.
The move keeps in place a temporary relief introduced in March under the Export Promotion Mission’s RELIEF (Resilience and Logistics Intervention for Export Facilitation) package, aimed at protecting exporters from payment default risks and logistical disruption linked to the West Asia crisis.

Scope of the extended cover

Under the extended provision, exporters taking credit‑risk insurance from the Export Credit Guarantee Corporation (ECGC) will remain eligible for the enhanced support through 30 September 2026.
The enhanced cover originally applied to shipments to the Gulf, West Asia and North Africa between March 16 and June 15, and the extension broadens the eligibility window to help businesses facing ongoing regional volatility.

How much cover exporters get

Exporters using ECGC cover can now access risk protection of up to 95 percent under Component II of the RELIEF intervention, compared with the standard ECGC coverage of about 85–90 percent.
The government will continue to bear the fee for the enhanced cover, lowering the cost burden on exporters and encouraging continued trade flows to affected markets.

What the support covers

The enhanced insurance cover applies to direct exports as well as consignments transshipped through West Asian hubs, ensuring shipments routed via the region are eligible for the same protection.
The package is designed to prevent order cancellations, preserve exporters’ cash flows and maintain India’s market share in critical export destinations amid the conflict‑related disruptions.

Implementation and monitoring

The RELIEF scheme is implemented through ECGC with oversight from the Export Promotion Mission; the government set aside resources earlier in March to operationalise the intervention and support exporters, including MSMEs.
An inter‑ministerial group has been monitoring the situation and the scheme’s rollout, and the DGFT notification formalises the extended eligibility timelines to give exporters clarity through September.

Industry reaction and implications

Exporters and trade bodies welcomed the extension as a necessary stopgap to shield shipments and receivables from heightened credit risk in the region, while urging swift claims processing and clear guidance on documentation for transshipped cargo.
Analysts say the continuation of government‑funded insurance support should stabilise trade flows and buyer confidence in West Asian markets until broader geopolitical risks ease.