Government Launches ‘RELIEF’ Scheme under DGFT’s Notification to Provide Time-Bound Support to Indian Exporters Amid Geopolitical Disruptions in Gulf and West Asia Maritime Corridor

The DGFT has issued Notification No. 65/2025–26 dated 19th March 2026, announcing a time-bound relief measure aimed at supporting Indian exporters facing disruptions in the Gulf and West Asia maritime corridor. The notification introduces a comprehensive intervention titled “Resilience & Logistics Intervention for Export Facilitation (RELIEF)” under the Export Promotion Mission (EPM), with the objective of mitigating the adverse impact of ongoing geopolitical tensions in the region.

In recent months, escalating geopolitical developments in West Asia, particularly around the Strait of Hormuz and adjoining maritime routes, have significantly disrupted global shipping and logistics networks. The Gulf and West Asia corridor, being a strategically vital trade route for India, has witnessed increased freight costs, longer shipping durations, rerouting of vessels, and heightened insurance premiums. These developments have led to additional financial burdens on Indian exporters, especially in terms of war risk premiums, emergency conflict surcharges, and other extraordinary levies imposed by shipping lines and insurers.

Recognising the gravity of the situation and its potential to impact India’s export competitiveness, the Government has undertaken a calibrated and targeted response through the RELIEF initiative. This intervention is designed as a time-limited support mechanism to address elevated export risks and ensure continuity in India’s trade flows to and through the affected region. The scheme will be implemented through the Export Credit Guarantee Corporation of India (ECGC), which will act as the nodal agency responsible for execution, disbursement, and verification of claims under the programme.

The RELIEF initiative comprises three distinct yet complementary components, each tailored to address specific challenges faced by exporters. The first component focuses on providing enhanced export credit support to exporters who are already insured under ECGC policies. Under this component, exporters whose consignments were shipped during the eligible period—specifically between February 14, 2026 and March 15, 2026—will benefit from protection against war-related and political risks arising in the affected countries. Importantly, the scheme ensures that insurance premiums for such exporters will not exceed pre-disruption levels, thereby preventing additional financial strain.

Additionally, this component enables ECGC to extend coverage of up to 100 percent of losses, subject to verification and prescribed conditions. The Government will reimburse ECGC for the compensation paid to exporters over and above the amount admissible under existing policies. This provision is expected to significantly reduce the risk exposure of exporters dealing with volatile markets in the region. The estimated financial outlay for this component is ₹56 crore, reflecting the Government’s commitment to safeguarding exporters against unforeseen geopolitical shocks.

The second component of RELIEF aims to encourage exporters to obtain ECGC insurance coverage for upcoming shipments to the affected region. This forward-looking measure applies to shipments for which bills of lading or airway bills are issued between March 16, 2026 and June 15, 2026. Similar to the first component, exporters under this scheme will not face increased insurance premiums beyond pre-disruption levels.

Under this component, ECGC will provide enhanced coverage of up to 95 percent of losses arising from war-related and political risks in the specified countries, which include key markets such as the United Arab Emirates, Saudi Arabia, Israel, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, and Yemen. The Government will reimburse ECGC for any compensation exceeding standard policy coverage, thereby incentivising exporters to continue trade operations in the region with reduced risk. The estimated budgetary support for this component is ₹159 crore.

The third component addresses a critical gap by extending support to Micro, Small and Medium Enterprises (MSMEs) that are not covered under ECGC insurance. Recognising that many MSME exporters may lack access to formal insurance mechanisms, this component provides partial reimbursement for extraordinary freight and insurance costs incurred due to the disruptions. Eligible shipments under this component must have been dispatched during the period from February 14, 2026 to March 15, 2026.

The reimbursement framework under this component is structured to address both CIF (Cost, Insurance and Freight) and FOB (Free on Board) contracts. For CIF contracts, exporters can claim up to 50 percent of the additional freight and insurance costs actually incurred, subject to submission of documentary evidence. For FOB contracts, reimbursement of up to 50 percent of the reduction in realised export proceeds is permissible, provided that such reduction is directly attributable to extraordinary surcharges linked to the disruptions.

Eligible costs include war risk surcharges, emergency conflict surcharges, additional war risk premiums, and other shipping-related charges arising from route diversions or conflict-induced disruptions. The assistance under this component is capped at ₹50 lakh per exporter, ensuring equitable distribution of benefits across MSMEs. The total estimated allocation for this component is ₹282 crore, making it the largest segment of the RELIEF package.

Overall, the RELIEF intervention entails a total financial outlay of approximately ₹497 crore, which will be met from the existing budgetary allocation under the Export Promotion Mission. The scheme is designed to operate within a defined financial ceiling and will be subject to budget availability, verification processes, and operational safeguards as prescribed by the Government.

To ensure transparency and efficiency in implementation, claims under the RELIEF scheme will be processed on a first-come, first-served basis, subject to eligibility criteria and availability of funds. ECGC will maintain a real-time monitoring dashboard to track claims processed and funds disbursed, thereby enabling effective oversight and timely decision-making.

The Export Promotion Mission Steering Committee will play a crucial role in reviewing the progress of the intervention and may recommend modifications, extensions, or withdrawal of specific components based on evolving geopolitical conditions. The Committee may also prescribe a negative list of goods to exclude certain categories from the benefits of the scheme, ensuring targeted and efficient utilisation of resources.

The RELIEF initiative is expected to provide critical support to exporters by reducing financial uncertainties, stabilising supply chains, and preventing export order cancellations during the disruption period. By addressing both risk coverage and cost escalation, the scheme aims to preserve India’s trade linkages with key markets in the Gulf and West Asia region.

Furthermore, the intervention underscores the Government’s proactive approach in responding to global challenges and its commitment to strengthening the resilience of India’s export ecosystem. By safeguarding exporters against external shocks and facilitating continuity in trade operations, the RELIEF scheme is poised to play a vital role in sustaining export growth and protecting employment across sectors.

In conclusion, the issuance of Notification No. 65/2025–26 marks a significant policy response to the current geopolitical environment, reinforcing India’s resolve to support its exporters through timely and targeted interventions. The RELIEF programme not only addresses immediate challenges but also sets a precedent for adaptive policy frameworks capable of responding to dynamic global trade conditions.

The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/03/Notf.-65-Relief-to-trade.pdf