RELIEF Scheme: What Indian Exporters Need to Know

PIB Release ID: 2242410
Date: 19 March 2026
Announced By: DGFT under Export Promotion Mission (EPM)Website: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2242410&reg=3&lang=1
Implementing Agency: ECGC Ltd.
Total Outlay: ₹497 Crore (allocated across insurance support, risk coverage, and MSME reimbursement under the RELIEF scheme)

The RELIEF scheme for exporters helps reduce this sudden financial pressure and supports trade continuity.

Why This Scheme Was Introduced

Over the past few weeks, exporters dealing with Gulf and West Asia markets have faced a sudden cost shock.

Due to disruptions around the Strait of Hormuz, shipping routes became unstable. As a result:

Freight rates increased sharply (in many cases 90–100%)
War risk premiums and emergency surcharges were added
Cargo movement slowed due to congestion and diversions
Working capital pressure increased, especially for MSMEs

For businesses operating on tight margins, these disruptions did not just cause delays — they directly affected profitability and cash flow.

To address this, the government introduced the RELIEF Scheme (Resilience & Logistics Intervention for Export Facilitation) as a time-bound financial and risk support mechanism.

How the Scheme Is Structured

Instead of offering a single benefit, the scheme divides support into three components based on the exporter’s situation during the disruption period.

This ensures that support is targeted, not generic.

Component I For Exporters Already Covered Under ECGC

Eligible Period: 14 February 2026 to 15 March 2026

This applies to exporters who had existing ECGC insurance and completed shipments during the disruption window.

What changes for you:

Existing ECGC cover remains in place
Government provides top-up protection up to 100% risk coverage
No additional premium is charged (pre-disruption rates continue)

Practical implication:

If you had partial insurance coverage earlier, the scheme now protects the remaining uncovered portion significantly reducing your exposure.

Component II For Upcoming Shipments

Eligible Period: 16 March 2026 to 15 June 2026
Outlay: ₹159 Crore

This component is forward-looking. It applies to exporters planning shipments during the ongoing uncertainty.

What you get:

Up to 95% government-backed risk coverage
Coverage available through new ECGC policies
Premiums aligned to pre-disruption levels

Key point:

Insurance must be taken before dispatch. Post-shipment coverage is not available under this component.

Component III For MSMEs Without ECGC Cover

Eligible Period: 14 February 2026 to 15 March 2026
Outlay: ₹282 Crore

This addresses the most impacted segment — MSMEs who exported without insurance during the disruption.

What you get:

Up to 50% reimbursement of additional freight and insurance costs
Cap of ₹50 lakh per exporter
Subject to documentary verification

What qualifies as “extra cost”:

War risk premiums
Emergency surcharges
Freight increases linked to disruption

This is not a full recovery mechanism, but it directly reduces the financial burden.

Additional Relief Measures

Beyond the three components, the scheme includes operational support:

1. Export Obligation Relief

Advance Authorisation and EPCG deadlines falling between
1 March to 31 May 2026
Extended to 31 August 2026
No penalty applicable

2. Port-Level Relief

Waiver of storage and dwell time charges
Applicable to cargo affected during the disruption period

3. Monitoring Mechanism

ECGC to maintain a real-time dashboard
Tracks:
- Claims
- Fund utilisation
- Scheme progress

Countries Covered Under the Scheme

The scheme applies only to exports connected with the following regions:

UAE
Saudi Arabia
Qatar
Oman
Bahrain
Kuwait
Iraq
Iran
Israel
Yemen

This also includes transshipment cargo linked to these routes.

Quick Eligibility Check

Before proceeding, verify the following:

Shipment linked to one of the specified countries
Dates fall within the relevant component window
ECGC status (insured / not insured) is clearly identified
MSME classification (for Component III) is valid
Supporting documents are available

If these are clear, the next step is documentation and filing through ECGC.

What Scheme does:

Reduces risk exposure
Supports exporters facing unexpected cost escalation
Provides short-term financial cushioning

What Scheme does not do:

It does not eliminate commercial risk entirely
It does not apply automatically application is required
It does not extend beyond defined timelines (unless notified separately)

Conclusion

The RELIEF scheme is a targeted response to a specific disruption, not a long-term subsidy.

The scheme recognises that different exporters faced different levels of impact and addresses each case accordingly:

Insured exporters get full risk protection
Upcoming shipments get high coverage at controlled cost
MSMEs get partial cost recovery support

For exporters, the key is timely action. The scheme is active, but the windows are fixed.

Delays in understanding eligibility or preparing documentation may result in missed benefits.

LinkedIn Link : RMPS Profile

Prepare by : Labh Modhiya www.linkedin.com/in/labh-modhiya-594644242

This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.

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