To mitigate the severe economic fallout from the escalating US-Iran conflict, the Government of India officially launched the RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme on March 19, 2026. With an outlay of ₹497 crore, the time-bound intervention aims to provide a financial safety net for exporters struggling with skyrocketing freight costs, insurance premiums, and stranded shipments in the Persian Gulf.
The Triple-Tier Support Structure
The scheme, implemented by the Export Credit Guarantee Corporation (ECGC), is divided into three strategic components to cover both past disruptions and future risks.
| Component | Target Group | Financial Outlay | Key Benefit |
| Component I | Currently Insured Exporters | ₹56 Crore | 100% risk cover for shipments (Feb 14 – Mar 15) at pre-war premium rates. |
| Component II | Future Exports (Next 3 Months) | ₹159 Crore | Enhanced 95% risk cover for new shipments (Mar 16 – Jun 15) to 10+ affected nations. |
| Component III | Uninsured MSMEs | ₹282 Crore | 50% reimbursement of extra freight/insurance costs (capped at ₹50 lakh per exporter). |
Strategic Interventions & Logistics
Beyond direct financial aid, the Ministry of Commerce has introduced several operational “relaxations” to prevent a total trade collapse:
- Automatic Extensions: Export obligations for Advance Authorisations and EPCG schemes due by May 31, 2026, are automatically extended to August 31, 2026, without any penalty.
- Geographic Focus: The relief specifically covers 17–18 high-risk geographies, including the UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel, and Yemen.
- Inter-Ministerial Monitoring: A daily Inter-Ministerial Group (IMG) has been established, involving the RBI, Ministry of External Affairs, and Ministry of Petroleum, to track cargo movement and resolve “back to town” (returned) shipment issues in real-time.
Why the RELIEF Scheme was Triggered
The move follows a “dual shock” to Indian trade routes after the Strait of Hormuz was effectively militarized:
- Insurance Withdrawal: Global reinsurers have largely pulled back from the Persian Gulf, forcing Indian exporters to seek state-backed cover.
- Freight Surcharges: Emergency “War Risk” surcharges have seen freight rates jump by 100% on some routes, hitting MSMEs with limited working capital.
- Stranded Cargo: Hundreds of containers, particularly perishable goods like bananas and grapes, are currently rotting at ports like Kandla and Mundra due to vessel diversions.
“Domestic Needs First”
Commerce Secretary Rajesh Agrawal clarified that while the government is fighting to keep exports flowing, the domestic energy and food supply remains the priority. “If certain businesses are getting limited due to energy needs, our first preference is domestic needs; exports can wait,” he noted during the briefing.
