Govt Expands RELIEF Scheme Coverage Amid West Asia Crisis

Amid ongoing geopolitical tensions in West Asia, disruptions in global shipping routes, rising freight charges, and increased insurance premiums have adversely affected Indian exporters. To address these challenges, the Government of India has expanded the Resilience and Logistics Intervention for Export Facilitation (RELIEF) Scheme, adding Egypt and Jordan to the list of eligible export destinations. This expansion widens the scope of assistance for exporters facing logistical and financial constraints due to the crisis.

Key Points:

The RELIEF Scheme was launched on 19 March 2026 with an outlay of ₹497 crore to assist exporters affected by geopolitical disruptions.

New Additions:

Egypt and Jordan have been added to the list of eligible export destinations.

The scheme covers:

Shipments meant for delivery or transshipment to eligible countries.

Eligibility Expansion:

Exporters holding ECGC (Export Credit Guarantee Corporation) policies after 16 March 2026 are now eligible for benefits.

Key Benefits Under Scheme:

Enhanced insurance coverage for export shipments

Support for higher freight and insurance costs

Assistance for both ongoing and future exports

Implementation Agency:

The scheme is implemented through the Export Credit Guarantee Corporation (ECGC).

Additional Reforms: Measures introduced to speed up approvals under export-related schemes like Advance Authorisation.

Reason for Scheme:

West Asia crisis has led to:

Sharp rise in freight charges

Increase in insurance premiums

Disruption of shipping routes, especially via key maritime corridors

Strategic Importance of West Asia:

Major destination for India’s exports (oil-importing region and key trade partner).

Complementary Measures:

RBI has extended export credit timelines to ease liquidity pressure on exporters.

Indian ports are offering fee waivers and logistics support to exporters.

Focus on MSMEs:

Scheme particularly benefits small and medium exporters, who are more vulnerable to global disruptions.

Trade Facilitation Role:

Helps maintain India’s export competitiveness and global supply chain participation

ECGC:

ECGC Limited (formerly Export Credit Guarantee Corporation of India), established in 1957, is a government-owned company under the Ministry of Commerce and Industry that provides export credit insurance services to protect Indian exporters against payment risks, such as buyer insolvency or political instability.

Key Functions and Services of ECGC:

Risk Protection: Covers commercial risks (e.g., buyer default) and political risks (e.g., war, currency restrictions).

Export Credit Insurance: Offers policies that protect against non-payment, allowing up to 90% reimbursement of invoice value.

Banking Support: Offers Export Credit Insurance for Banks (ECIB) to cover pre-shipment and post-shipment financing.

Information Services: Provides credit reports on foreign buyers and information on countries.

Headquarters: Mumbai, Maharashtra.