In a targeted move to safeguard India’s export sector amid escalating geopolitical tensions in West Asia, the government has approved a time-bound intervention titled RELIEF (Resilience & Logistics Intervention for Export Facilitation) under the Export Promotion Mission (EPM). The initiative is designed to address rising logistics costs, insurance premiums, and operational uncertainties triggered by disruptions in key maritime trade routes, particularly around the Strait of Hormuz.
The decision comes in response to mounting challenges faced by Indian exporters as security concerns in the Gulf region have led to vessel rerouting, congestion at transshipment hubs, and the imposition of emergency war-risk surcharges. These developments have significantly increased freight costs and disrupted supply chains, especially for shipments bound for major trade partners such as United Arab Emirates, Saudi Arabia, Qatar and Oman.
Under the RELIEF framework, the government aims to stabilise export flows by offering financial risk mitigation across the export cycle. The scheme is being implemented through Export Credit Guarantee Corporation of India (ECGC), which will act as the nodal agency responsible for claim processing, disbursement, and monitoring.
A key component of the scheme includes enhanced insurance coverage for exporters. Shipments already insured under ECGC during the disruption window (February 14 to March 15, 2026) will receive up to 100% risk coverage over existing policies, ensuring comprehensive protection against conflict-related risks without additional cost. For upcoming consignments over the next three months, exporters will be eligible for up to 95% risk coverage with government backing, aimed at sustaining trade momentum despite heightened uncertainty.
Recognising the vulnerability of small businesses, the scheme also includes a dedicated provision for MSME exporters who may not have availed ECGC insurance. These exporters will be eligible for partial reimbursement—up to 50%—of increased freight and insurance costs, subject to a ceiling of ₹50 lakh per exporter. This measure is expected to prevent order cancellations and maintain competitiveness in price-sensitive markets.
The intervention is backed by a financial outlay of ₹497 crore and will be continuously monitored through a dashboard-based system for real-time tracking. Oversight will be carried out by an inter-ministerial group established to coordinate responses to supply chain disruptions and ensure policy agility in a rapidly evolving geopolitical environment.
Trade analysts note that the RELIEF scheme reflects a broader policy shift toward proactive export risk management. With a significant share of India’s energy imports and outbound trade dependent on the Gulf corridor, disruptions in the region pose immediate risks to trade volumes, pricing stability, and delivery timelines. By addressing both cost escalation and risk exposure, the government aims to reinforce exporter confidence and sustain India’s position in global supply chains.
The initiative also highlights the increasing importance of policy-backed trade resilience mechanisms in an era marked by geopolitical volatility. As global shipping routes face repeated disruptions, targeted interventions such as RELIEF are expected to play a critical role in ensuring continuity of trade and protecting employment across export-linked sectors.