Centre launches Rs 497-cr RELIEF package to shield exporters from Gulf shipping crisis – The Tribune

In a relief measure for Indian exporters affected by geopolitical tensions in the Gulf and West Asia, the Centre has operationalised a Rs 497-crore support package under the Export Promotion Mission (EPM) to cushion the impact of soaring freight, insurance and war-risk costs that have disrupted maritime trade through the region.

The Ministry of Commerce, through the Directorate General of Foreign Trade (DGFT), has notified the Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme, a time-bound intervention to address export risks arising from security disruptions around the Strait of Hormuz and the wider Gulf maritime corridor. The scheme will be implemented by the Export Credit Guarantee Corporation of India (ECGC).

According to the notification, escalating regional tensions have forced shipping companies and insurers to levy Additional War Risk Premiums (AWRP), War Risk Surcharges (WRS), Emergency Conflict Surcharges (ECS) and other extraordinary freight charges, sharply increasing logistics costs for Indian exporters. The disruptions have also resulted in vessel diversions, longer shipping routes and congestion at transshipment hubs.

The RELIEF package comprises three targeted components. The first provides enhanced export credit protection for exporters already insured by ECGC, enabling compensation of up to 100 per cent of eligible losses for shipments made between February 14 and March 15, 2026, while ensuring that insurance premiums are not raised above pre-disruption levels. The government has earmarked Rs 56 crore for this component.

The second component is designed to encourage exporters to obtain ECGC cover for upcoming shipments to affected Gulf and West Asian markets. It offers enhanced insurance protection of up to 95 per cent of losses for eligible consignments shipped between March 16 and June 15, 2026, with an estimated government outlay of Rs 159 crore.

The third and largest component, with an allocation of Rs 282 crore, is aimed at MSME exporters who are not covered by ECGC insurance. It provides reimbursement of up to 50 per cent of additional freight and insurance costs arising from conflict-related surcharges or equivalent reductions in export realisations. Assistance under this component will be capped at Rs 50 lakh per exporter, subject to documentary proof and verification.

The notification states that the support package will help maintain the continuity of India’s exports to Gulf and West Asian markets, reduce the financial burden of extraordinary logistics costs, prevent cancellation of export orders, minimise supply chain disruptions and protect employment across export-oriented sectors. Claims will be processed on a first-come, first-served basis, subject to eligibility, verification and availability of funds, while ECGC will maintain a real-time dashboard to monitor disbursements.