THEBUSINESSBYTES
BUREAU
NEW DELHI,
MARCH 19, 2026
In a decisive move to cushion India’s export
sector from escalating geopolitical disruptions in West Asia, the Government
has approved a targeted intervention — RELIEF (Resilience & Logistics
Intervention for Export Facilitation) — under the Export Promotion Mission
(EPM), aimed at stabilising trade flows amid surging freight, insurance and
war-risk costs.
The initiative comes against the
backdrop of heightened security concerns around the Strait of Hormuz, which
have triggered vessel diversions, longer transit routes, congestion at key
transshipment hubs and the imposition of emergency surcharges. These
disruptions have significantly inflated logistics costs while creating
operational uncertainty for exporters shipping goods to or through the Gulf region.
Designed as a time-bound and
responsive mechanism, RELIEF underscores the Government’s commitment to swiftly
address external shocks impacting India’s trade ecosystem. As part of a
coordinated whole-of-government approach, an Inter-Ministerial Group (IMG) on
Supply Chain Resilience was operationalised on March 2, 2026, and has since
been conducting daily reviews involving ministries, financial institutions,
logistics stakeholders and exporter bodies. The group has already facilitated
measures such as procedural relaxations for stranded cargo, waivers on port
storage charges, enhanced port coordination, pricing transparency advisories
for shipping lines, and closer monitoring of insurance risks.
At the core of the RELIEF framework is
a comprehensive support structure spanning the entire export cycle, covering
both shipments affected during the disruption window and those planned in the
near term. ECGC Ltd. has been designated as the nodal implementing agency,
leveraging its expertise in export credit risk coverage, including protection
against political and war-related contingencies.
The intervention offers enhanced
protection for exporters who had already secured ECGC insurance during the
disruption period, providing up to full risk coverage without additional
financial burden. It also incentivises exporters planning shipments over the
next three months with expanded risk coverage support, thereby sustaining
confidence and ensuring continuity in trade flows.
Significantly, RELIEF extends a
lifeline to MSME exporters who may not have availed credit insurance but are
grappling with extraordinary freight and insurance surcharges. These exporters
will be eligible for partial reimbursement support, subject to specified
conditions and ceilings, offering timely financial relief amid volatile
logistics costs.
Backed by an approved outlay of ₹497 crore, the intervention will be monitored through a
real-time dashboard managed by ECGC, with periodic reviews by the EPM Steering
Committee to recalibrate the scheme in line with evolving geopolitical
developments.
Through RELIEF, the Government aims
not only to mitigate immediate disruptions but also to safeguard exporter
confidence, prevent order cancellations and protect employment across
export-driven sectors, reinforcing India’s resilience and competitiveness in an
increasingly uncertain global trade environment.
