India Launches ₹497 Crore Relief Scheme for Exporters Affected by Crisis

The Indian government has announced a relief programme titled the Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme, allocating ₹497 crore to assist exporters affected by the ongoing crisis in West Asia. The scheme, launched on March 19, 2026, aims to provide credit insurance cover for exporters whose goods are stuck due to the conflict, as well as those planning to export to Gulf countries in the upcoming months.

Commerce Secretary Rajesh Agrawal emphasised the challenges faced by Indian exporters, many of whom are experiencing difficulties due to the war in West Asia. "Our exporters who have been exporting to the Middle East are facing certain challenges," he stated during a press conference. "There have been instances where exports that were meant for some of the countries in the region have not been able to reach their destination. There is a sense of worry among the exporters, especially those who have got exposure to the Middle East countries. Their future exports are also getting impacted."

The RELIEF scheme is designed to offer insurance premiums at pre-conflict rates, with a particular focus on micro, small, and medium enterprises (MSMEs). It consists of three main components:

The first part, with a budget of ₹56 crore, targets exporters who already have credit insurance from ECGC Ltd., which is wholly owned by the Ministry of Commerce & Industry. Exporters falling under this category will benefit from insurance at pre-disruption rates for consignments shipped between February 14 and March 15, 2026, destined for countries including the UAE, Saudi Arabia, and others affected by the crisis.

The second component, totalling ₹159 crore, is aimed at exporters without existing ECGC cover who plan to ship to the impacted nations during the next three months. For this group, insurance premiums will also align with pre-disruption rates, and ECGC will cover 95% of losses, subject to verification.

The final and largest component, accounting for ₹282 crore, is dedicated solely to MSME exporters that have yet to secure ECGC cover, applying to shipments made between February 14 and March 15, 2026. To qualify for this assistance, there's a limit of ₹50 lakh per exporter.

Rajesh Kumar Sinha, Special Secretary at the Ministry of Ports, Shipping and Waterways, provided details regarding shipping conditions in the region, highlighting two container ships currently en route from India to Oman and the UAE. "Both are container vessels... the first is CMA CGM Vitoria which is at the Sohar port in Oman which has 24 Indian seafarers on board," he explained.

In addition to the RELIEF scheme, the Indian government is exploring the establishment of a protection and indemnity insurance (P&I) club to reduce reliance on foreign insurers for maritime operations. Sinha noted the absence of a P&I club in India and stressed its importance in providing comprehensive insurance coverage for shipowners.

The initiative is part of a broader Export Promotion Mission introduced during the 2025 budget and aims to mitigate the financial impact on exporters due to the geopolitical situation in West Asia. With these measures, the government seeks to instil confidence among exporters and facilitate smoother international trade in challenging times.