Govt Extends RELIEF Scheme to Aid Exporters Amid West Asia Crisis
India extends RELIEF scheme timelines to help exporters manage rising freight and insurance costs caused by West Asia maritime logistics disruptions.
In a significant move to protect Indian trade, the government has extended the operational timelines for the Resilience & Logistics Intervention for Export Facilitation (RELIEF). This decision aims to support exporters struggling with the ongoing maritime logistics disruptions and geopolitical volatility in West Asia.
Mitigating Risks in Volatile Corridors
The Department of Commerce issued a notification on September 30, extending the timelines under Component II of the RELIEF intervention. This measure is a vital part of the larger Export Promotion Mission (EPM) and is designed to sustain trade flows despite the escalating freight costs, rising insurance premiums, and war-related risks currently affecting the Gulf and surrounding maritime routes.
The extension comes as a direct response to the persistent geopolitical tensions in West Asia, which have created significant uncertainty in global shipping and insurance arrangements. By providing this cushion, the government intends to ensure that Indian exporters can maintain their international trade momentum despite the regional instability.
Key Benefits of Component II
Under the RELIEF scheme, specifically Component II, the government offers substantial protection to exporters shipping to high-risk regions. Key features include:
- High Risk Coverage: Exporters are encouraged to obtain ECGC cover for upcoming shipments, with the intervention providing 95 per cent risk coverage.
- Premium Protection: A crucial feature of the scheme is that exporters covered under this intervention will not face an increase in insurance premiums beyond pre-disruption levels during the eligible period. This helps contain the financial burden caused by heightened maritime risks.
- Flexible Cargo Options: The coverage is applicable to various cargo types, including Full Container Load (FCL), Less than Container Load (LCL), and Reefer containers.
Note: Energy shipments are explicitly excluded from this intervention.
Sustaining Global Trade Resilience
The RELIEF intervention was originally launched on March 19, 2026, to address the extraordinary challenges posed by freight escalation and heightened insurance costs in the West Asia maritime corridor. The component is available for both Stand Alone Policies and Whole Turnover Policies obtained on or after March 16, 2026.
The Department of Commerce emphasized that this extension reflects a firm commitment to ensuring export resilience. By supporting exporters through these logistics uncertainties, the government aims to safeguard India's economic interests and maintain steady trade flows in a rapidly changing geopolitical landscape.