India Launches RELIEF Initiative to Support Exporters Amid Crisis
In response to escalating security concerns in the Strait of Hormuz and significant disruptions to maritime logistics, the Indian Government has announced a new initiative titled RELIEF – Resilience & Logistics Intervention for Export Facilitation. This program aims to mitigate the impact of rising logistics costs and operational uncertainties affecting Indian exporters amid current geopolitical tensions in West Asia.
The deteriorating situation in the Gulf region has forced vessels to alter their routes and has resulted in congestion at key transshipment hubs, leading to increased shipping costs and emergency surcharges. The RELIEF initiative symbolizes the Government’s swift commitment to support exporters grappling with unprecedented freight hikes and heightened insurance premiums due to war-related risks.
Coordinated Response to Maritime Disruptions
To address these challenges, an Inter-Ministerial Group (IMG) on Supply Chain Resilience was established on March 2, 2026, to monitor developments and coordinate assistance efforts. Daily meetings commenced on March 3, bringing together various government ministries, financial institutions, logistics leaders, and exporter associations to tackle the crisis collaboratively.
The IMG has implemented a range of operational measures, including easing procedures for stranded cargo, enhancing port coordination, providing waivers on storage fees for affected shipments, and issuing advisories to promote greater transparency in shipping costs. These coordinated actions are designed to ensure real-time identification of challenges and create tailored interventions to assist exporters.
Key Features of the RELIEF Initiative
RELIEF is structured to benefit exporters at different stages of their shipping cycles. It provides comprehensive support for shipments already dispatched during the disruption period, as well as for upcoming exports. The Export Credit Guarantee Corporation of India Ltd. (ECGC) will manage the initiative, ensuring effective verification, claim processing, and monitoring of support provided.
The program consists of three key components aimed at maximizing risk coverage:
- Exporters who possess ECGC credit insurance for eligible consignments will receive up to 100% risk protection during the covered period from February 14, 2026, to March 15, 2026.
- For forthcoming shipments scheduled between March 16 and June 15, 2026, exporters are encouraged to secure ECGC coverage, providing up to 95% risk support to sustain confidence and facilitate steady shipment flows.
- For micro, small, and medium enterprises (MSMEs) that did not have credit insurance during the critical period but are facing severe freight and insurance costs, RELIEF offers partial reimbursement of up to 50%, subject to specific conditions.
The Government has allocated Rs. 497 Crores to ensure effective implementation of the program under the Export Promotion Mission. Additionally, ECGC will maintain a dashboard to monitor claims and fund utilization, with the EPM Steering Committee conducting periodic reviews to assess the initiative based on ongoing geopolitical shifts.
Through the RELIEF initiative, the Indian Government seeks to alleviate immediate logistical challenges, support exporter confidence, prevent order cancellations, and protect jobs in export-related sectors. This intervention underscores India’s determination to remain resilient and competitive in the global trading landscape, even amidst adversity.
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