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Amid escalating geopolitical tensions in West Asia, particularly affecting key maritime routes such as the Gulf region, India has introduced a targeted intervention, RELIEF (Resilience & Logistics Intervention for Export Facilitation) to support exporters facing rising logistics costs and operational uncertainties.

Background: Need for the Initiative

• Recent disruptions in critical maritime corridors have led to vessel diversions, longer transit times, congestion at ports, and increased freight and insurance costs. These developments have adversely impacted Indian exporters, especially MSMEs, by raising transaction costs and threatening export continuity.
• Given India’s growing integration with global trade, such disruptions highlight the need for policy instruments that enhance supply chain resilience and protect export competitiveness.

About RELIEF Initiative

• RELIEF is a time-bound financial and risk mitigation measure launched in March 2026 under the Export Promotion Mission by the Ministry of Commerce and Industry.
• It is implemented by the Export Credit Guarantee Corporation of India (ECGC), which is responsible for verification, risk coverage, claim settlement, and monitoring.
• The initiative aims to ensure continuity of exports, reduce financial stress on exporters, and safeguard employment in export-linked sectors.

Key Features and Mechanism

• The RELIEF framework provides support across the entire export cycle, covering both past and future consignments affected by disruptions.
• For exporters already insured under ECGC, the scheme offers enhanced risk coverage of up to 100% for shipments during the disruption period, ensuring protection against unforeseen losses. For upcoming consignments, up to 95% coverage is provided with government backing, encouraging exporters to continue operations despite uncertainty.
• Recognising the vulnerability of MSMEs, the initiative also includes a partial reimbursement mechanism, covering up to 50% of increased freight and insurance costs (subject to a ceiling), thereby reducing the burden of sudden cost escalations.
• Additionally, a digital dashboard-based monitoring system has been introduced to track claims, fund utilisation, and logistics conditions in real time, ensuring transparency and efficiency.

Institutional and Policy Support

The implementation of RELIEF is supported by a whole-of-government approach, including the establishment of an Inter-Ministerial Group (IMG) on Supply Chain Resilience. This group facilitates coordination among ministries, logistics stakeholders, and exporters, enabling real-time policy responses such as procedural relaxations, port-level facilitation, and improved logistics coordination.