Government Extends RELIEF Scheme for Exporters to March 2027 Amid West Asia Disruptions

The Indian government has extended Component II of the RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme by six months to March 31, 2027, according to an official statement issued by the Department of Commerce on Monday.

Launched initially on March 19, 2026, as part of the government's Export Promotion Mission, the scheme is designed to help Indian exporters manage exceptional increases in logistics costs and export risks. These elevated costs and risks stem from continuing geopolitical tensions in West Asia that have disrupted maritime logistics across the Gulf and surrounding regions, pushing up freight rates, insurance premiums, and war-related risks.

Under the extended framework, eligible exporters are offered risk coverage against specified shipping and insurance costs. The initiative encourages exporters to obtain insurance cover from the Export Credit Guarantee Corporation of India (ECGC) for eligible shipments directed to specified regions. According to a notification dated September 30 issued by the department, eligible exporters can receive 95 per cent risk coverage. Additionally, protection against increases in insurance premiums beyond pre-disruption levels remains available during the eligible period.

Component II covers standalone and whole-turnover ECGC policies obtained on or after March 16, 2026. The scope of eligible cargo includes full container load (FCL), less than container load (LCL), and refrigerated containers. However, energy shipments are excluded from the coverage.

Exporters seeking to claim benefits under the scheme are required to submit claims along with supporting documents through the ECGC customer portal. To assist businesses with the process, the corporation has published video tutorials on its official YouTube channel guiding users through registration and claim submission procedures.

The six-month extension is intended to sustain trade flows and reduce exporters' exposure to high shipping and insurance expenses while geopolitical uncertainty persists in the maritime corridor. The overall impact of the extension will depend on the extent of eligible exporters' participation and the specific costs and risks covered under the policy parameters.

"The extension of the RELIEF scheme provides a necessary financial cushion for exporters dealing with unpredictable shipping and insurance costs due to West Asian maritime disruptions. By offering up to 95 per cent risk coverage through the ECGC, the government helps mitigate operational risks for businesses engaged in international trade. Exporters should carefully review the policy parameters, utilize the available digital portals for claims, and leverage this support to maintain supply chain continuity during ongoing geopolitical uncertainties." — Dr. Shishir Gupta, Founder & CEO, StartupLanes