Exporters to get ₹497-cr relief package to offset war disruption

AMid heightened concerns around the sound of Hormuz and the deteriorating world(a) geopolitical state of affairs due to the state of war in westward Asia, the government on Thursday announced a ₹497 crore relief package for exporters to mitigate the immediate impact of logistics disruptions and safeguard jobs.The intervention, called RELIEF (Resilience & Logistics Intervention for Export Facilitation) comprises three complementary components covering consignments destined to countries in West Asia such as the 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 is for exporters who already have an ECGC credit insurance cover. They will benefit from up to 100% risk coverage, over and above the existing cover during the eligible period (February 14 to March 15), giving them extra protection without additional financial burden, it said.The second one is for exporters planning 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, which will help maintain exporter confidence and facilitate continued shipment flows, it 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, and are facing extraordinary freight and insurance surcharge burdens, RELIEF will provide a partial reimbursement mechanism, it said.“This support will be extended subject to prescribed conditions, documentary verification and notified ceilings (up to ₹50 lakhs per exporter),” it said.The interventions are part of the ₹25,060 crore Export Promotion Mission (EPM) 2026-31, which aims to “mitigate the immediate impact of logistics disruptions, protect exporter confidence, prevent order cancellations and safeguard employment in export-linked sectors” and it also reinforces India’s commitment to maintain “resilience and competitiveness” in global trade during periods of uncertainty, the ministry said.“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 administrative control of the ministry of commerce & industry.