West Asia crisis: Govt launches Rs 497-cr scheme to give relief to affected exporters
This comes at a time when exporters are facing a number of hurdles amid the widening war in West Asia.
The Commerce and Industry Ministry Thursday announced a Rs 497-crore scheme to ease pressure on exporters facing trade disruption due to widespread logistical challenges, including near doubling of freight and fuel costs owing to the ongoing war in West Asia.
The Ministry said that the ‘RELIEF’ scheme would include automatic extension of export obligations, logistical support, and potential financial measures to manage shipping delays and would mainly include consignments destined for delivery or trans-shipment to the UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel and Yemen.
Commerce Secretary Rajesh Agarwal, addressing the press, said, “We are announcing a new scheme under the Export Promotion Mission (EPM), 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 the crisis has had some impact on the overall trade environment and exporters are facing challenges as there have been instances where exports meant for West Asia have not reached their destination, and “there is a sense of worry”. He said an inter-ministerial group is trying to respond to challenges, particularly addressing challenges related to warehousing and logistics.
This comes at a time when exporters are facing a number of hurdles amid the widening war in West Asia. The Indian Express had reported that over 300 rice containers were stuck at various stages due to the crisis, and exporters were concerned about higher port and demurrage charges.
According to a statement released by the Ministry, the scheme has three parts: “First, exporters who have already obtained Export Promotion Capital Goods (EPCG) credit insurance cover for eligible consignments will benefit from up to 100% risk coverage, over and above the existing ECGC cover, during the eligible period – February 14, 2026 till March 15, 2026 – thereby ensuring enhanced protection without additional financial burden.”
“Second, exporters planning upcoming consignments, during the next three months (March 16, 2026 till June 15, 2026), will be encouraged to obtain ECGC cover with Government support for up to 95% risk coverage, over and above the existing ECGC cover, which will help sustain exporter confidence and facilitate continued shipment flows despite logistics uncertainties,” it said.
“Third, recognising that some MSME exporters may not have availed credit insurance – February 14, 2026, till March 15, 2026 – but are facing extraordinary freight and insurance surcharge burdens, RELIEF includes a partial reimbursement (up to 50%) mechanism for eligible non-ECGC-insured MSME exporters. This support will be extended subject to prescribed conditions, documentary verification and notified ceilings (up to Rs 50 lakh per exporter), and is intended to provide timely relief against conflict-related logistics cost escalation,” the Ministry said.
An official said the EPM Steering Committee will periodically review the operation of the intervention in light of evolving geopolitical conditions and may recommend calibrated modification, continuation or withdrawal as necessary.
The Ministry said, “Through ‘RELIEF’, the government aims to mitigate the immediate impact of logistics disruptions, protect exporter confidence, prevent order cancellations and safeguard employment in export-linked sectors. The intervention also reinforces India’s commitment to maintaining resilience and competitiveness in global trade during periods of uncertainty.”
The Commerce and Industry Ministry Thursday announced a Rs 497-crore scheme to ease pressure on exporters facing trade disruption due to widespread logistical challenges, including near doubling of freight and fuel costs owing to the ongoing war in West Asia.
The Ministry said that the ‘RELIEF’ scheme would include automatic extension of export obligations, logistical support, and potential financial measures to manage shipping delays and would mainly include consignments destined for delivery or trans-shipment to the UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel and Yemen.
Commerce Secretary Rajesh Agarwal, addressing the press, said, “We are announcing a new scheme under the Export Promotion Mission (EPM), 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 the crisis has had some impact on the overall trade environment and exporters are facing challenges as there have been instances where exports meant for West Asia have not reached their destination, and “there is a sense of worry”. He said an inter-ministerial group is trying to respond to challenges, particularly addressing challenges related to warehousing and logistics.
This comes at a time when exporters are facing a number of hurdles amid the widening war in West Asia. The Indian Express had reported that over 300 rice containers were stuck at various stages due to the crisis, and exporters were concerned about higher port and demurrage charges.
According to a statement released by the Ministry, the scheme has three parts: “First, exporters who have already obtained Export Promotion Capital Goods (EPCG) credit insurance cover for eligible consignments will benefit from up to 100% risk coverage, over and above the existing ECGC cover, during the eligible period – February 14, 2026 till March 15, 2026 – thereby ensuring enhanced protection without additional financial burden.”
“Second, exporters planning upcoming consignments, during the next three months (March 16, 2026 till June 15, 2026), will be encouraged to obtain ECGC cover with Government support for up to 95% risk coverage, over and above the existing ECGC cover, which will help sustain exporter confidence and facilitate continued shipment flows despite logistics uncertainties,” it said.
“Third, recognising that some MSME exporters may not have availed credit insurance – February 14, 2026, till March 15, 2026 – but are facing extraordinary freight and insurance surcharge burdens, RELIEF includes a partial reimbursement (up to 50%) mechanism for eligible non-ECGC-insured MSME exporters. This support will be extended subject to prescribed conditions, documentary verification and notified ceilings (up to Rs 50 lakh per exporter), and is intended to provide timely relief against conflict-related logistics cost escalation,” the Ministry said.
An official said the EPM Steering Committee will periodically review the operation of the intervention in light of evolving geopolitical conditions and may recommend calibrated modification, continuation or withdrawal as necessary.
The Ministry said, “Through ‘RELIEF’, the government aims to mitigate the immediate impact of logistics disruptions, protect exporter confidence, prevent order cancellations and safeguard employment in export-linked sectors. The intervention also reinforces India’s commitment to maintaining resilience and competitiveness in global trade during periods of uncertainty.”
