Government Launches RELIEF Scheme to Support Exporters Amid Middle East Crisis
₹500 Crore Initiative Aims to Stabilize Trade and Ease Logistics Disruptions
New Delhi, March 19: The government on Thursday launched a new scheme titled Resilience & Logistics Intervention for Export Facilitation (RELIEF) to support Indian exporters facing disruptions due to the ongoing crisis in the Middle East. The initiative is aimed at ensuring continuity in trade flows and safeguarding India’s market share during a period of heightened global uncertainty.Commerce Secretary Rajesh Agrawal announced the scheme, stating that it forms part of the broader Export Promotion Mission. He described RELIEF as a structured support package designed to stabilize export operations impacted by logistical and operational challenges.
Targeted Support for MSMEs and Affected Export Destinations
The scheme will provide focused assistance to exporters, particularly micro, small and medium enterprises, which are facing difficulties due to disruptions in shipping routes and logistics networks. According to Agrawal, the support will be directed towards 17 to 18 key export destinations that have been significantly affected by the crisis in the Middle East and the Gulf region.He emphasized that the primary objective is to ensure smooth export movement despite ongoing challenges.
Relief on Freight Costs and Insurance Premiums
RELIEF is expected to help exporters manage rising freight costs and increased insurance premiums, both of which have surged following the escalation of conflict in the region. The scheme will extend coverage to both insured exporters and non Export Credit Guarantee Corporation insured MSME exporters.The support will be available for one month, along with provisions for assistance on future shipments for a period of up to three months.
Government to Fund Scheme Through Existing Allocation
The expenditure for the RELIEF scheme will be met through the existing allocation under the Export Promotion Mission. In parallel, the government has constituted an inter-ministerial group to address ongoing challenges faced by exporters.Agrawal noted that several shipments are experiencing delays and, in some cases, are failing to reach their intended destinations due to disruptions in key trade routes.
Middle East Crisis Driving Global Trade Disruptions
The current challenges follow last month’s joint attack by the United States and Israel on Iran, which has disrupted major shipping and air corridors in the region. This has led to a rise in oil prices and increased logistics costs, impacting global trade flows.ECGC to Implement Scheme
Director General of Foreign Trade Lav Agarwal announced an outlay of nearly ₹500 crore for the RELIEF scheme, highlighting that it will be a focused and time-bound intervention. The government-owned Export Credit Guarantee Corporation will act as the implementing agency.The government expects the RELIEF initiative to help exporters navigate ongoing disruptions and maintain steady trade operations during what it described as extraordinary times.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Last edited by a moderator: