New Delhi: In response to rising geopolitical tensions in West Asia disrupting global shipping routes, the government on Thursday approved a new support mechanism titled RELIEF (Resilience & Logistics Intervention for Export Facilitation) to protect Indian exporters from escalating logistics costs and trade risks.
The move comes amid heightened security concerns around the Strait of Hormuz, which have led to vessel diversions, longer routes, congestion at transshipment hubs, and emergency surcharges.
These developments have increased freight costs and created uncertainty for export consignments moving through the region, according to an official statement.
The government said the intervention, approved under the Export Promotion Mission, aims to address extraordinary freight escalation, higher insurance premiums, and war-related risks impacting exporters.
An Inter-Ministerial Group on Supply Chain Resilience has been operational since March 2 to monitor the situation and coordinate response measures. The group has been holding daily review meetings since March 3 with participation from ministries, financial institutions, logistics stakeholders, and exporter bodies.
Based on these consultations, the government has implemented measures such as procedural relaxations for stranded cargo, improved port coordination, waivers on storage and dwell time charges, advisories for transparency in shipping costs, and enhanced monitoring of insurance risks and inland logistics.
Under the RELIEF framework, Export Credit Guarantee Corporation (ECGC) Ltd., a government-owned entity under the Ministry of Commerce and Industry, has been designated as the nodal agency for verification, claim processing, disbursement, and monitoring.
The government further said the scheme will support both past and upcoming export consignments to affected countries, including the United Arab Emirates, Saudi Arabia, Kuwait, Israel, Qatar, Oman, Bahrain, Iraq, Iran, and Yemen.
The intervention provides enhanced risk coverage for exporters who already have ECGC insurance during the disruption period from February 14 to March 15, 2026. It also encourages exporters planning shipments between March 16 and June 15, 2026, to obtain ECGC cover with additional government-backed risk protection.
The scheme includes a provision for partial reimbursement of up to 50% of freight and insurance surcharges for eligible MSME exporters who do not have ECGC coverage, subject to conditions and a ceiling of Rs 50 lakh per exporter.
The government has approved a financial outlay of Rs 497 crore for the intervention under the Export Promotion Mission. A dashboard-based monitoring system will track claims and fund utilisation, while the EPM Steering Committee will review the scheme periodically based on evolving geopolitical developments.
Officials said the initiative aims to reduce the impact of logistics disruptions, maintain exporter confidence, prevent order cancellations, and protect employment in export-linked sectors.
The government has stated that the scheme reflects its commitment to ensuring resilience and competitiveness in global trade during periods of uncertainty.
