India rolls out ₹497-crore RELIEF scheme to shield exporters from West Asia disruption
Summary
The Indian government has announced a ₹497-crore package called Resilience & Logistics Intervention for Export Facilitation (RELIEF) to help exporters affected by disruption in West Asia. The scheme is funded from the Export Promotion Mission (EPM) allocation and will be administered with verification and operational safeguards.
Key features include enhanced ECGC insurance cover for consignments shipped during the disruption (14 Feb–15 Mar 2026), subsidised risk cover for planned shipments (16 Mar–15 Jun 2026), and partial reimbursement for MSMEs that did not take ECGC cover but faced elevated freight and insurance surcharges. ECGC Ltd will be the nodal agency for verification, claims and disbursement.
Key Points
- Government launches the RELIEF scheme with a ₹497-crore allocation from the Export Promotion Mission (EPM).
- Scheme covers consignments to/from key West Asian markets (UAE, Saudi Arabia, Kuwait, Israel, Qatar, Oman, Bahrain, Iraq, Iran, Yemen) including trans-shipped goods.
- Past shipments (14 Feb–15 Mar 2026) with existing ECGC cover will get up to 100% risk coverage (an increase from typical 75–80%) at no extra cost.
- Upcoming shipments (16 Mar–15 Jun 2026): government support will encourage ECGC cover and extend up to 95% risk coverage to sustain exports.
- MSME relief: exporters without ECGC cover during the disruption may get up to 50% reimbursement of freight/insurance surcharges, capped at ₹50 lakh per exporter, subject to documentation and conditions.
- ECGC Ltd appointed as nodal agency to verify claims, disburse funds and monitor the scheme.
- Government is exploring a sovereign insurance pool with domestic insurers/reinsurers and measures to protect against delayed payments and contract cancellations.
- Trade through the affected corridor is significant — about $178 billion overall and roughly $56 billion with GCC countries (≈15% of India’s global trade).
Context and relevance
Rising freight costs, surging insurance premiums and war-related transit risks in West Asia have created immediate operational and financial stress for exporters and logistics providers. The corridor affected handles a sizeable share of India’s trade, so disruptions can ripple through supply chains, affect working capital needs and push up costs for MSMEs in particular.
RELIEF is a targeted move to shore up exporter confidence, limit cargo diversion costs, and reduce insolvency risk from cancelled contracts or delayed payments. By using ECGC as the implementing agency and considering a sovereign insurance pool, the government aims to combine short-term relief with longer-term risk management tools for high-risk transit routes.
Why should I read this?
Short answer: if your business ships to or via West Asia, this is the bit of news you need now. The scheme changes who absorbs insurance and freight pain — and can save MSME exporters hefty sums. It also flags possible new insurance structures (a sovereign pool) that could reshape transit risk cover. If you handle exports, logistics, freight insurance or trade finance, skim the key points — then dig into the rules when ECGC issues them.