The Government of India, through Notification No. 65/2025-26 dated 19 March 2026, has introduced a time-bound support framework for exporters under the RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme. This intervention is a targeted response to ongoing geopolitical disruptions impacting maritime trade routes.
Background: Global Disruptions and Their Impact
The Gulf and West Asia region constitutes a strategically critical trade corridor for India, particularly for exports routed through or destined for countries in this geography.
As highlighted in the notification;
- Rising geopolitical tensions in West Asia, including instability around the Strait of Hormuz, have significantly affected maritime logistics.
- Shipping companies and insurers have imposed additional charges such as:
- War Risk Premium (AWRP)
- War Risk Surcharge (WRS)
- Emergency Conflict Surcharge (ECS)
- Exporters are facing:
- Higher freight costs
- Increased insurance premiums
- Longer transit routes due to vessel diversions
- Congestion at transshipment hubs
These developments have resulted in a sudden escalation in logistics costs and risk exposure, adversely impacting export competitiveness. Recognising this, the Government has introduced a calibrated, time-bound intervention under the Export Promotion Mission to ensure continuity of trade and mitigate financial stress.
RELIEF Scheme – Overview
The RELIEF framework consists of three complementary components, each targeting a specific category of exporters and risk scenarios.
| Particulars | Component I – Existing ECGC Exporters | Component II – New/Upcoming ECGC Coverage | Component III – MSME Reimbursement |
| Objective | Strengthen protection for already insured exporters | Encourage exporters to opt for ECGC coverage | Offset extraordinary logistics cost for MSMEs |
| Eligible Exporters | Exporters with existing ECGC policy | Exporters opting for ECGC for upcoming shipments | MSMEs not covered under ECGC |
| Coverage Period | 14 Feb 2026 – 15 Mar 2026 | 16 Mar 2026 – 15 Jun 2026 | 14 Feb 2026 – 15 Mar 2026 |
| Eligible Shipments | BL/AWB issued within period | BL/AWB issued within period | BL issued within period |
| Geographical Scope | Gulf & West Asia countries | Gulf & West Asia countries | Gulf & West Asia countries |
| Nature of Support | Enhanced credit risk cover | Facilitated ECGC coverage + enhanced protection | Reimbursement of freight & insurance cost |
| Extent of Benefit | Up to 100% loss coverage | Up to 95% loss coverage | Up to 50% reimbursement |
| Type of Risk Covered | War risk + political risk | War risk + political risk | Freight surcharges, insurance escalation |
| Premium Impact | No increase beyond pre-disruption levels | No increase beyond pre-disruption levels | Not applicable |
| Special Conditions | Excludes back-to-town cargo | Excludes back-to-town & energy shipments | Only MSMEs; ₹50 lakh cap per IEC |
| Mode of Benefit | Compensation through ECGC | Insurance support through ECGC | Direct reimbursement |
| Government Support | ₹56 crore | ₹159 crore | ₹282 crore |
| Key Compliance Requirement | Valid ECGC policy + shipment proof | ECGC policy + shipment proof | Documentary evidence of cost increase |
Key Insights on Each Component
Component I – Protection for Existing ECGC Policyholders
- Designed to stabilize exporters already covered under ECGC.
- Ensures no increase in premium during disruption.
- Provides top-up compensation beyond standard policy limits.
- Covers both war-related and political risks.
This is critical for exporters already exposed to risk at the time disruptions escalated.
Component II – Encouraging Risk Coverage for Future Shipments
- Focused on forward-looking risk mitigation.
- Incentivizes exporters to opt for ECGC coverage.
- Maintains premium stability despite increased global risk.
- Provides up to 95% coverage, reducing downside exposure.
This component ensures exporters continue shipments instead of deferring exports.
Component III – Direct Cost Relief for MSMEs
- Targets MSMEs not covered under ECGC.
- Recognizes that smaller exporters are most vulnerable to cost shocks.
- Covers:
- War-related freight surcharges
- Increased insurance premiums
- Reduction in export realization (for FOB contracts)
Notably:
- Reimbursement capped at ₹50 lakh per exporter
- Requires robust documentation (contracts, bank realization, debit notes, etc.)
Financial Outlay and Administration
- Total scheme outlay: ₹497 crore (Page 5)
- Implementing agency: ECGC (Export Credit Guarantee Corporation)
- Claims processed on:
- First-come-first-served basis
- Subject to verification and fund availability
The scheme is explicitly time-bound and dynamic, with scope for review based on evolving geopolitical conditions.
How Industry Should Stay Prepared
Given the limited window and documentation-heavy process, exporters must act proactively:
| Area | Action Required | Why It Matters |
| Documentation Control | Maintain BL/AWB, invoices, freight breakup, insurance details | Primary evidence for eligibility & claim |
| Cost Segregation | Separate accounting for war risk surcharge, insurance escalation | Helps establish causal linkage for reimbursement |
| ECGC Coverage Review | Evaluate existing policies or obtain new coverage | Enables access to higher compensation & risk protection |
| Shipment Planning | Align shipment dates within eligibility windows | Eligibility strictly linked to shipment timelines |
| Contract Review (FOB/CIF) | Track impact of freight escalation on contract value | Required to compute loss/reduction in realization |
| Proof of Loss | Maintain BRC, bank statements, debit notes | Critical for demonstrating actual financial impact |
| Internal SOPs | Create standard process for capturing disruption-related costs | Ensures consistency and audit readiness |
| Coordination with Logistics Providers | Obtain surcharge details and supporting documents | Validates extraordinary cost claims |
| Claim Readiness | Prepare claim files in advance (not post-facto) | First-come-first-served basis under scheme |
| Audit Trail Maintenance | Preserve emails, communication with shipping lines/insurers | Strengthens defensibility during verification |
| Monitoring Deadlines | Track scheme timelines and submission windows | Avoid loss of benefit due to timing gaps |
| Management Awareness | Sensitize finance/export teams on scheme provisions | Ensures timely and informed decision-making |
Author’s comments:
The RELIEF scheme is a well-targeted, risk-responsive intervention addressing three core exporter concerns:
- Risk of non-payment (credit risk)
- Insurance cost escalation
- Freight and logistics disruption costs
While the scheme offers significant financial cushioning, it is procedurally intensive and time-sensitive. Exporters who act swiftly, maintain documentation discipline, and align their export strategy with scheme conditions will be best positioned to derive maximum benefit.
Disclaimer
This note is for informational purposes only and is based on Notification No. 65/2025-26 dated 19 March 2026. It does not constitute legal or professional advice. Readers should evaluate applicability based on their specific facts and seek appropriate professional guidance. Eligibility under the RELIEF scheme is subject to prescribed conditions, documentation, verification, and availability of funds. No liability is accepted for any reliance placed on this note.