Government Launches ₹497 Crore ‘RELIEF’ Scheme to Support Exporters Amid Middle East Conflict

The Government of India launched the RELIEF (Resilience & Logistics Intervention for Export Facilitation) Scheme with an outlay of ₹497 crore.

The scheme aims to support Indian exporters affected by the ongoing conflict in West Asia/Middle East.

It addresses challenges such as:

Rising freight costs

Increased insurance premiums

Shipping delays and disruptions

Objective of the Scheme

To ensure continuity of exports and prevent trade disruptions.

To protect India’s market share in Gulf and West Asian regions.

To enhance resilience of exporters, especially MSMEs.

Key Features of RELIEF Scheme

The scheme has three major components:

Support for existing shipments (protection & obligation relief)

Enhanced insurance coverage for future exports

Special support for MSMEs facing cost pressures

Implemented through the Export Credit Guarantee Corporation (ECGC).

Provides higher risk coverage (up to ~95–100%) in certain cases.

Includes daily monitoring mechanism for trade disruptions.

Coverage Area

Focus on Gulf and West Asia trade corridors.

Covers exports to around 17 countries, including major Gulf nations.

Export Credit Guarantee Corporation (ECGC)

Established in 1957

Chairman & MD: Sristiraj Ambastha

Under Ministry of Commerce & Industry

Provides:

Export credit insurance

Protection against commercial & political risks

Export Promotion Mission (EPM)

Announced in Union Budget 2025-26

Aim: Boost India’s exports and global competitiveness

RELIEF scheme is part of this mission

Importance of West Asia for India

Accounts for significant share of India’s exports (~$100 billion annually)

Major source of:

Crude oil & energy imports

Key trade route via Strait of Hormuz

Impact of Middle East Conflict

Disruption in shipping routes & logistics

Increase in war-risk insurance premiums

Surge in freight costs (up to 90–100% in some routes)