Govt Widens Export Relief Cover To Support Traders Hit By War

(MENAFN- Live Mint) The Centre has expanded the geographical coverage of its Resilience & Logistics Intervention for Export Facilitation (Relief) scheme to support exporters hit by the ongoing war in West Asia, the commerce ministry said on Friday.

Egypt and Jordan have now been added to the list of eligible destinations. The coverage includes both final deliveries and transhipment cargo, reflecting the spillover of logistical disruptions across the extended West Asia–North Africa trade route.

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Launched on 19 March 2026 under the Export Promotion Mission, the time-bound scheme aims to cushion Indian exporters from surging freight costs, higher insurance premiums and war-related trade risks stemming from disruptions across the Gulf and wider West Asia maritime corridor.

Benefits and policy support

Implemented by the Export Credit Guarantee Corporation of India (ECGC), the scheme offers support across the export cycle, including for shipments already undertaken during the disruption period as well as future consignments. It includes insurance facilitation and reimbursement support for eligible MSMEs facing elevated freight and insurance surcharges.

In a policy circular dated 15 April, the government clarified that exporters taking a fresh ECGC Whole Turnover Policy on or after 16 March 2026 will also qualify for support under Component II. The move is aimed at widening participation, particularly among new policyholders.

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“The expansion reflects the government's continuous assessment of evolving trade and logistics conditions and its commitment to addressing challenges faced by exporters,” the ministry said in the statement.

The scheme aims to enhance export resilience, sustain trade flows and support Indian exporters navigating heightened uncertainty in key global shipping routes.

Last month, the package was undertaken with a financial outlay of ₹497 crore under the mission, the government said. The ECGC will maintain a dashboard-based monitoring system to enable real-time tracking of claims and fund utilization, the statement said.

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“Through RELIEF, the government aims to mitigate the immediate impact of logistics disruptions, protect exporter confidence, prevent order cancellations and safeguard employment in export-linked sectors. The intervention also reinforces India's commitment to maintaining resilience and competitiveness in global trade during periods of uncertainty,” the government said last month.

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