India rolls out ₹497 crore RELIEF scheme to support exporters amid West Asia conflict
In a bold move to sustain international trade, India has unveiled a robust export support initiative with a budget of ₹497 crore. This program is strategically designed to safeguard Indian shipments adversely impacted by the turmoil in West Asia. ...
By ET Bureau | Updated:
Govt launches ₹497-crore RELIEF for exporters with deadline relief, insurance cover, MSME aid
New Delhi: India on Thursday rolled out a ₹497 crore export support package to cushion shipments hit by disruptions from the West Asia conflict, offering enhanced insurance cover and logistics relief as war risks drive up freight and premiums even as officials assured that domestic requirements would take precedence over exports in case of supply constraints.
The Resilience & Logistics Intervention for Export Facilitation or RELIEF scheme will cover consignments to about 17 countries, as global reinsurers pull back from conflict-hit routes, including the Strait of Hormuz, to stabilise trade flows and prevent order cancellations for Indian exporters.
This is the first of the set of measures in the offing that also includes banking and finance-related relief, officials said.
Scheme to cover consignments to about 17 countries as global reinsurers pull back
"The West Asia conflict has had an impact...There is a sense of worry in exporters among those who have exposure to the Middle East," commerce secretary Rajesh Agrawal said, adding the scheme focuses on geographies most exposed to the disruption and due to "age-old relationships" with the region.
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He said India will continue supplying food to West Asia but the scale of shipments would depend on logistical challenges and rising costs.
"If certain businesses are getting limited due to energy needs our first preference is domestic needs, exports can wait," he said.
The government-owned Export Credit Guarantee Corporation will implement the RELIEF scheme, which spans the export cycle - covering both shipments already dispatched during the disruption window and upcoming exports. In eligible cases, coverage of up to 100% of losses will be provided, with the government reimbursing the insurer. At present, ECGC covers around 70-80% risk.
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The move follows a surge in freight rates on key routes, straining smaller exporters with limited working capital. The scheme includes automatic extensions of export obligations, logistical support and potential financial measures to manage delays.
Officials said the overall hit to March exports may be limited despite the disruptions.
