Resilience & Logistics Intervention for Export Facilitation (RELIEF)
Why in News?
The Resilience & Logistics Intervention for Export Facilitation (RELIEF) is a time-bound support scheme launched by the Government of India on March 19, 2026. It is designed to protect Indian exporters, particularly MSMEs, from severe disruptions caused by the ongoing conflict in West Asia.
About
- Geopolitical Conflict: Ongoing tensions, including security concerns around the Strait of Hormuz, have led to vessel diversions and longer shipping routes.
- Surging Costs: Freight rates and insurance premiums have spiked significantly (some by 90–100%) due to conflict-linked surcharges and "war-risk" premiums.
- Stranded Cargo: Exporters have faced operational uncertainty with goods stranded or delayed at transshipment hubs like those in the UAE.
Key Features
The intervention is implemented under the Export Promotion Mission (EPM) with ECGC Ltd. as the nodal agency.
- Financial Outlay: ₹497 crore allocated to provide a cushion against rising logistics costs.
- Three-Pronged Framework:
- Past Shipments: For consignments shipped between February 14 and March 15, 2026, exporters with existing ECGC insurance receive up to 100% risk coverage at no extra cost.
- Upcoming Exports: For shipments between March 16 and June 15, 2026, the government supports up to 95% risk coverage to maintain trade flow.
- MSME Support: Small exporters without insurance can receive partial reimbursement (up to 50%) of increased freight and insurance costs, capped at ₹50 lakh per exporter.
- Targeted Destinations: Covers exports to or through 10 key countries: UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel, and Yemen.
- Procedural Easing: Includes automatic extension of export obligations and waivers for storage/dwell time charges at ports for affected cargo.
- Monitoring: An Inter-Ministerial Group (IMG) on Supply Chain Resilience conducts daily reviews to adjust the scheme based on evolving geopolitical conditions.
Strategic Objectives
- Maintain Market Share: To prevent Indian exporters from losing ground to international competitors during the crisis.
- Protect Employment: By safeguarding the export-linked sectors that are major employers in India.
- Exporter Confidence: Ensuring that order cancellations are minimized by providing a financial safety net.
- Are you an exporter looking to check your eligibility for these reimbursements, or would you like more details on the ECGC claim process?
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