The government has approved a time-bound initiative, RELIEF (Resilience & Logistics Intervention for Export Facilitation), under the Export Promotion Mission to support exporters affected by rising logistics costs and disruptions in West Asia.

The move comes in response to escalating geopolitical tensions around the Strait of Hormuz, which have led to vessel diversions, higher freight and insurance costs, and operational uncertainties for shipments.

Under the scheme, ECGC Ltd has been designated as the nodal agency to handle verification, claims, and disbursements, leveraging its expertise in export credit risk coverage.

RELIEF includes three key components: enhanced risk coverage of up to 100% for insured shipments during the disruption period, up to 95% coverage support for upcoming exports over the next three months, and up to 50% reimbursement (capped at Rs 50 lakh) for MSME exporters not covered by insurance but impacted by higher logistics costs.

The scheme will be implemented with a financial outlay of Rs 497 crore and will cover exports to key Gulf and West Asia markets. The government stated that the initiative aims to maintain export momentum, protect jobs, and ensure resilience in India’s trade ecosystem amid global uncertainties.