Indian Government Introduces ₹497 Crore Relief Scheme for Exporters

On March 19, 2026, the Indian government unveiled a substantial financial initiative aimed at bolstering exporters impacted by the ongoing crisis in West Asia. The new programme, named the Resilience & Logistics Intervention for Export Facilitation (RELIEF), has been allocated ₹497 crore to provide essential credit insurance cover for exporters facing difficulties due to war-related disruptions.

Officials from the Ministry of Commerce and Industry noted that Indian exporters have encountered significant challenges as a result of the conflict in West Asia, which has hindered their operations. The RELIEF scheme is designed to alleviate some of these hardships, offering exporters greater confidence in their export activities.

"Our exporters who have been exporting to the Middle East are facing certain challenges," commented Commerce Secretary Rajesh Agrawal during a press briefing. He elaborated that there have been instances where goods intended for clients in the region were unable to reach their destinations, leading to heightened concerns among exporters regarding future trade.

As part of the initiative, the government has categorised the RELIEF scheme into three key components. The first component, which has been allocated ₹56 crore, specifically targets exporters already covered by credit insurance from ECGC Ltd., the state-owned Export Credit Guarantee Corporation of India. Under this segment, exporters will be able to access insurance premiums at pre-crisis rates for consignments that are documented with bills of lading or airway bills issued between February 14 and March 15, 2026. This component is valid only for shipments bound for specific Middle Eastern countries including the United Arab Emirates, Saudi Arabia, and Iraq.

The second component, amounting to ₹159 crore, extends support to exporters who have not previously opted for ECGC coverage. This section aims to encourage new participants to consider credit insurance when exporting to the affected regions. The cover applies to consignments with bills of lading or airway bills issued between March 16 and June 15, 2026, although energy shipments will be excluded from this provision. ECGC will further provide coverage for up to 95% of losses encountered by these exporters.

The largest element of the scheme, comprising ₹282 crore, is specifically targeted at micro, small, and medium enterprises (MSMEs) that have faced difficulties but did not have ECGC coverage previously. This third component places a cap of ₹50 lakh on support per exporter and applies to shipments dispatched between February 14 and March 15, 2026.

Additionally, discussions are underway to establish a domestic protection and indemnity (P&I) insurance club. Currently, Indian exporters rely heavily on foreign insurance providers, and the government aims to reduce this dependence. Rajesh Kumar Sinha, Special Secretary at the Ministry of Ports, Shipping and Waterways, stated, "Currently, the country does not have a P&I club, and it is an important subject for us. While it will take time to establish, we will create one."

P&I insurance is essential for ship owners, addressing liabilities extending beyond conventional maritime coverage, including claims from crew and third parties.

Through the introduction of the RELIEF scheme, the Indian government seeks to not only facilitate smoother export operations amid the turmoil in West Asia but also support the broader export promotion mission initially outlined in the Budget for 2025. With provisions aimed at both established and new exporters, the initiative demonstrates a commitment to enhancing India's export capacity during challenging times.