Government unveils Rs 497-crore RELIEF scheme for exporters hit by West Asia crisis
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The Ministry of Commerce and Industry on Thursday announced a Rs 497 crore support scheme to help exporters affected by disruptions caused by the ongoing conflict in West Asia.
The scheme, titled ‘RELIEF’ and launched under the Export Promotion Mission, aims to ease pressure from rising freight and fuel costs, which have nearly doubled due to the crisis. It will primarily cover consignments destined for or trans-shipped through countries including the UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel, and Yemen.
Commerce Secretary Rajesh Agarwal said the initiative targets exporters impacted across multiple geographies and seeks to address growing concerns over delays and uncertainty in shipments. He noted that some consignments have failed to reach their destinations, contributing to anxiety among exporters, while an inter-ministerial group is working on logistics and warehousing challenges.
The scheme has three key components.
Exporters with existing Export Promotion Capital Goods credit insurance will receive up to 100 percent risk coverage over and above current protection for shipments from February 14 to March 15, 2026. For upcoming consignments between March 16 and June 15, exporters will be supported to obtain credit insurance with up to 95 percent risk coverage.
Additionally, MSME exporters without credit insurance but facing high freight and insurance costs will be eligible for partial reimbursement of up to 50 percent, capped at Rs 50 lakh per exporter, subject to conditions and verification.
The move comes as exporters face mounting challenges, including reports of over 300 rice containers being held up at various stages due to the crisis, along with rising port and demurrage charges.
Officials said the Export Promotion Mission Steering Committee will review the scheme periodically based on evolving geopolitical conditions and may adjust it accordingly.
The ministry said the initiative is aimed at mitigating immediate disruptions, preventing order cancellations, protecting employment in export sectors, and maintaining India’s competitiveness in global trade during a period of uncertainty.
