Govt Launches ₹497 Cr RELIEF Scheme For Exporters Hit By Crisis

On March 19, 2026, the government rolled out a ₹497 crore Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme to help exporters dealing with disruptions linked to the West Asia crisis.

The plan focuses on keeping credit insurance affordable by holding premiums at pre-conflict levels, especially for shipments that are delayed or exposed to risks because of the ongoing tensions. Officials said the initiative is part of the broader Export Promotion Mission introduced in Budget 2025.

The move comes as Indian exporters deal with delayed shipments, rising uncertainty and concerns over future orders in key Middle Eastern markets. According to officials, goods meant for countries in the region have in some cases not reached their destinations, creating both financial and operational stress.

With this backdrop, the RELIEF scheme seeks to provide assurance and reduce risks for exporters.

What Does The ₹497 Crore RELIEF Scheme Offer To Exporters?

The RELIEF scheme will allow exporters to take insurance cover without paying higher premiums, even though risks in the region have gone up. In simple terms, the cost of cover stays close to what it was before the crisis.

This cover is provided through the Export Credit Guarantee Corporation (ECGC), a government-run agency that protects exporters against the risk of non-payment.

Officials noted that the scheme also includes war-related and political risk coverage, which has become more relevant due to the current situation in West Asia.

The support extends to shipments headed to countries such as the UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel and Yemen.

To prevent exporters from taking on extra financial pressure, the government will step in and compensate ECGC for any claims that go beyond its usual coverage limits.

How Is the Scheme Structured Across Different Exporters?

The RELIEF scheme is split into three parts, with each one aimed at a specific group of exporters.

First Component (₹56 crore):

This component is meant for exporters who are already covered under ECGC insurance. It covers shipments where the bill of lading or airway bill was issued between 14 February and 15 March 2026.

These exporters will continue to receive insurance at earlier premium rates, with protection against war-related risks.

Second Component (₹159 crore):

This is meant for exporters who do not currently have ECGC cover but are planning shipments in the near term.

The coverage window applies to consignments shipped between 16 March and 15 June 2026. Under this component, ECGC can cover up to 95% of losses, encouraging more exporters to opt for insurance during uncertain conditions. Energy shipments are excluded.

Third Component (₹282 crore):

This is the largest portion of the scheme and is focused entirely on the micro, small and medium enterprises (MSME) exporters who do not have ECGC cover.

It covers shipments made between 14 February and 15 March 2026. Financial support is capped at ₹50 lakh per exporter.

Also Read: Rupee Hits Record Low, Breaches 93 Per Dollar

What Challenges Led To The RELIEF Scheme And What Comes Next?

Officials say two container vessels, CMA CGM Vitoria and SSL Godavari, are currently sailing through the eastern part of the Strait of Hormuz. They are carrying an Indian crew and cargo bound for Oman and the UAE.

That has raised fresh concerns. Supply chains could face disruptions. Insurance costs are going up. Delivery timelines may also be affected.

The government is looking at longer-term solutions as well. One option under discussion is setting up a Protection and Indemnity (P&I) insurance club in India.

The RELIEF scheme is part of a wider effort to keep exports stable during a period of global uncertainty.

Sources:

The Hindu

Moneycontrol