₹497 Crore ‘RELIEF’ Scheme Launched to Support Exporters Amid West Asia Crisis

Under the first component, war and political risk cover will be topped up for shipments between February 14 and March 15, 2026, for exporters already insured with the ECGC, and premiums will be maintained at pre-conflict levels.

The second component, targeting small exporters and MSMEs not covered by ECGC insurance, will provide partial reimbursement of up to 50 percent of the increased freight and insurance costs.

This will apply to past shipments for one month and future exports for the next three months. The third component will provide enhanced war risk coverage, logistics surcharges, and insurance premium relief for future exports.

This scheme primarily covers shipments destined for countries such as the UAE, Saudi Arabia, Qatar, Oman, Kuwait, Bahrain, Iraq, Iran, Israel, and Yemen.

Experts believe that the crisis in the Strait of Hormuz has forced ships to take alternative routes, leading to a manifold increase in freight rates and a spike in insurance costs. MSME exporters have been particularly affected.

The Commerce Ministry has urged exporters to contact the ECGC portal or the relevant export promotion councils as soon as possible to verify their eligibility. The government states that this move will not only provide immediate support to exporters but also strengthen India's credibility in the global supply chain.