West Asia conflict: Govt launches package for exporters to mitigate disruptions

AMid heightened certificate concerns around the sound of Hormuz and deteriorating worldwide geopolitical state of affairs due to the state of war in West Asia, the government launched a ₹497 crore relief package for exporters to mitigate the immediate impact of logistics disruptions and safeguard related employment.The intervention, RELIEF or Resilience and Logistics Intervention for Export Facilitation, comprises three complementary components covering consignments destined to countries in West Asia, such as the United Arab Emirates (UAE), Saudi Arabia, Kuwait, Israel, Qatar, Oman, Bahrain, Iraq, Iran and Yemen, meant either for delivery or for transshipment, the commerce ministry said in a statement.The first intervention pertains to the exporters, who have ECGC credit insurance cover for eligible consignments. They will benefit from up to 100% risk coverage, over and above the existing ECGC cover, during the eligible period (February 14 to March 15), thereby ensuring enhanced protection without additional financial burden, it said.The second one is for exporters planning upcoming consignments during the next three months. They will be encouraged to obtain ECGC cover with government support for up to 95% risk coverage, over and above the existing ECGC cover, to help sustain exporter confidence and facilitate continued shipment flows despite logistics uncertainties, the statement said.The third intervention is for micro, small, and medium enterprises (MSMEs). Recognising that some MSME exporters may not have availed credit insurance between February 14 and March 15, but are facing extraordinary freight and insurance surcharge burdens, RELIEF will provide a partial reimbursement mechanism for such eligible non-ECGC-insured exporters, it said. “This support will be extended subject to prescribed conditions, documentary verification, and notified ceilings (up to ₹50 lakhs per exporter),” the statement said.The ministry said interventions are part of the ₹25,060 crore Export Promotion Mission (EPM) 2026-31, which aim to “mitigate the immediate impact of logistics disruptions, protect exporter confidence, prevent order cancellations and safeguard employment in export-linked sectors”. It also reinforces India’s commitment to maintain “resilience and competitiveness” in global trade during periods of uncertainty, the ministry said.In view of the evolving geopolitical situation in West Asia and its impact on maritime logistics across the Gulf region, the government approved a “time-bound and targeted” intervention RELIEF to support Indian exporters affected by extraordinary freight escalation, heightened insurance premia, and war-related export risks arising from disruptions in the Gulf and wider West Asia maritime corridor, the ministry said.As part of the coordinated whole-of-government response to the crisis situation, an inter-ministerial group (IMG) on supply chain resilience was operationalised on March 2 to monitor the situation and coordinate facilitation measures. The IMG commenced daily review meetings from March 3, bringing together multiple ministries and departments, financial institutions, logistics stakeholders, and exporter associations.Based on IMG deliberations, several operational measures were implemented, including procedural relaxations for stranded cargo movement, enhanced coordination at ports, waivers of storage and dwell time charges for affected cargo at the ports, advisories to promote transparency in shipping line pricing, and strengthened monitoring of insurance risk developments and inland logistics movement, the ministry said.These coordinated efforts helped ensure real-time assessment of ground-level challenges and supported the design of a targeted financial-risk mitigation intervention, it added.“RELIEF has been structured to provide support across the export cycle by covering the shipments already left during the disruption period as well as prospective exports planned to the affected region,” the statement said.Under the approved framework, ECGC Ltd (formerly known as Export Credit Guarantee Corporation of India Ltd) has been designated as the nodal and implementing agency responsible for verification, claim processing, disbursement, and monitoring. State-run ECGC Ltd is under the administrative control of the commerce and industry ministry.