Source: PIB
Subject: Government Scheme
Context: The Government of India has expanded the geographical coverage of the RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme to include Egypt and Jordan.
About The RELIEF Scheme:
What it is?
- RELIEF is a time-bound, targeted intervention launched to mitigate the financial and logistical risks faced by Indian exporters due to geopolitical tensions in West Asia. It acts as a financial buffer against extraordinary war-risk surcharges, freight hikes, and insurance spikes that threaten the competitiveness of Indian goods.
Launched In: The scheme was officially launched on March 19, 2026, as part of the Export Promotion Mission (EPM).
Nodal Agency: ECGC Limited (formerly Export Credit Guarantee Corporation of India).
Aim:
- To prevent order cancellations and safeguard employment in export-linked sectors during maritime crises.
- To provide surety and confidence to exporters, especially MSMEs, allowing them to continue shipments to high-risk zones.
- To stabilize the financial burden on exporters by covering the gap between normal and conflict-era logistics costs.
Key Features:
The scheme is structured into three complementary components with a total financial outlay of ₹497 Crore:
- Component I (Enhanced Cover for Insured Exporters):
- For existing ECGC policyholders, it provides up to 100% risk coverage for war-related and political losses.
- Premiums are frozen at pre-disruption rates, with the government absorbing the additional risk cost.
- Component II (Facilitating New Coverage):
- Encourages new exporters to obtain ECGC cover for upcoming shipments with a 95% risk coverage backstop.
- Recently clarified to include those obtaining a fresh ECGC Whole Turnover Policy on or after March 16, 2026.
- Component III (Reimbursement for Non-Insured MSMEs):
- Provides a 50% reimbursement of extraordinary freight and insurance surcharges (e.g., War Risk Surcharge).
- Capped at ₹50 Lakh per exporter to ensure wide distribution of benefits.
- Eligible Destinations: Now covers UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel, Yemen, Egypt, and Jordan.
Significance:
- It ensures that India’s export momentum is not derailed by regional conflicts or the closure of critical chokepoints like the Strait of Hormuz.
- By reimbursing 50% of logistical surcharges, it protects the narrow profit margins of smaller businesses that are most vulnerable to shipping volatility.
