The Centre on Thursday launched the RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme with an outlay of Rs 497 crore to support Indian exporters facing disruptions due to the ongoing conflict in the Middle East, as the government moved to cushion the impact of rising freight costs, insurance premiums and shipping delays.The scheme has been introduced under the Export Promotion Mission and will be implemented by the Export Credit Guarantee Corporation of India (ECGC).Commerce secretary Rajesh Agarwal said the package is aimed at helping exporters exposed to conflict-hit markets in the region.“We are announcing a new scheme under the Export Promotion mission, especially focused upon exporters exposed to these 17-18 geographies which have been impacted by the conflict to assuage some of the challenges that our exporters are facing,” he said, according to news agency PTI.

Daily monitoring mechanism set up amid trade disruptions

The government has also set up an inter-ministerial group (IMG) comprising the commerce ministry, ministry of petroleum and natural gas, ports and shipping, department of financial services, ministry of external affairs, RBI, CBIC and other departments to track the situation on a daily basis.The group is meeting every day to assess the evolving cargo movement situation and determine the need for further intervention.Commerce secretary described the situation as one where the “Middle East conflict has an impact” and acknowledged there are significant “challenges due to this conflict.”He added, “The government has come together to set up two inter-ministerial group in the Department of Commerce. We are meeting daily to assess the challenges. We are trying to listen to them and respond to them.”

Scheme targets Gulf and Middle East export corridors

The RELIEF scheme mainly covers consignments meant for delivery or trans-shipment to key Gulf and Middle East destinations, including the UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel and Yemen.Urgency behind the scheme stems from disruptions around the Strait of Hormuz, which have triggered additional war-risk premiums and emergency conflict surcharges on maritime cargo.It added that freight rates on key routes had surged by nearly 90-100 per cent during the 2023-24 Red Sea crisis, and similar pressures are now weighing heavily on exporters, especially MSMEs with limited working capital.

Component I: Automatic export obligation relief and protection for existing shipments

The first component of the scheme offers automatic extension of export obligations for Advance Authorisations and EPCG authorisations falling due between March 1 and May 31, 2026, with the deadline now extended to August 31, 2026, without penalty.This component protects already insured shipments covered by ECGC in the immediate one-month window from February 14 to March 15, 2026.For exporters already insured by ECGC during that period, the government will top up compensation for war and political risk losses beyond normal policy cover, while keeping premiums at pre-disruption levels. The estimated support under this component is Rs 56 crore.

Component II: Enhanced ECGC cover for upcoming exports

The second component is designed for upcoming export consignments over the three-month period from March 16 to June 15, 2026, and aims to encourage and facilitate ECGC coverage.This component will provide stable premiums and enhanced insurance cover of up to 95 per cent for fresh shipments into the affected region. The estimated support under this segment is Rs 159 crore.

Component III: MSME support for freight and insurance shock

The third and largest component specifically targets MSME exporters that do not have ECGC cover.It will partly reimburse extraordinary freight and insurance costs over the one-month period from February 14 to March 15, 2026, shielding smaller exporters from sudden surcharge shocks.This segment will reimburse up to 50 per cent of the additional freight and insurance burden for non-ECGC-insured MSME exporters shipping to the affected markets. It said this component carries the biggest allocation of the package, with an estimated outlay of Rs 282 crore.

Govt says aim is to keep exports moving and protect market share

The commerce secretary underlined that the support package is meant not just as relief, but as a strategic step to preserve India’s position in key overseas markets during the crisis.“There is a dependence on our exports in these countries, and we are trying to see that even in these difficult circumstances, whatever exports we are able to do, we are trying to support that also,” he said, as quoted by ANI.ECGC will maintain a real-time monitoring dashboard for claims processing and fund utilisation, while an EPM Steering Committee will oversee the scheme and can reallocate funds depending on how the situation evolves.Taken together, the RELIEF package signals that the government expects the Middle East conflict to keep pressuring trade routes and logistics costs in the near term. The immediate goal appears to be to prevent shipment disruptions, avoid order cancellations and ensure Indian exporters, particularly MSMEs, do not lose market share in a strategically important region.