HomeNotificationDGFT Unveils Rs. 497 Crore ‘RELIEF’ Scheme to Cushion Exporters Against Gulf–West...

DGFT Unveils Rs. 497 Crore ‘RELIEF’ Scheme to Cushion Exporters Against Gulf–West Asia Shipping Disruptions

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The Directorate General of Foreign Trade (DGFT) has introduced a time-bound support mechanism for exporters impacted by disruptions in the Gulf and West Asia maritime corridor. The initiative, titled Resilience & Logistics Intervention for Export Facilitation (RELIEF), has been rolled out under the Export Promotion Mission (EPM) with an estimated outlay of Rs. 497 crore.

The notification came in response to rising logistics costs and operational uncertainties triggered by tensions around the Strait of Hormuz and the wider Gulf shipping network—one of India’s most critical trade routes.

Recent instability in West Asia has led to vessel rerouting, longer transit times, and congestion at transshipment hubs. Insurers have also imposed additional levies such as war risk premiums and emergency surcharges. These developments have sharply increased freight and insurance costs for Indian exporters, prompting government intervention.

Three-Pronged RELIEF Framework

The RELIEF scheme is structured around three targeted components aimed at addressing the financial stress faced by exporters:

1. Export Credit Support for Insured Exporters

This component focuses on exporters already covered by the Export Credit Guarantee Corporation of India (ECGC).

  • Ensures that insurance premiums are not increased beyond pre-disruption levels.
  • Covers shipments with bills of lading issued between February 14 and March 15, 2026.
  • Provides enhanced risk cover of up to 100% of losses linked to war and political risks.
  • Government allocation: ₹56 crore.

2. Encouraging Fresh Export Credit Coverage

To expand risk protection, the second component incentivizes exporters to obtain ECGC coverage for upcoming shipments.

  • Applicable to shipments between March 16 and June 15, 2026.
  • Maintains premium stability during the intervention period.
  • Offers enhanced insurance cover of up to 95% of losses.
  • Government allocation: ₹159 crore.

3. Freight & Insurance Reimbursement for MSMEs

Recognising the vulnerability of smaller exporters, the third component provides direct financial relief to non-ECGC insured MSMEs.

  • Covers extraordinary freight and insurance surcharges, including war risk premiums.
  • Offers up to 50% reimbursement of additional costs under both CIF and FOB contracts.
  • Caps assistance at ₹50 lakh per exporter.
  • Government allocation: ₹282 crore.

Coverage and Scope

The scheme applies to exports destined for or transiting through key Gulf and West Asian markets, including the UAE, Saudi Arabia, Kuwait, Israel, Qatar, Oman, Bahrain, Iraq, and Iran. It covers all major shipment categories—Full Container Load (FCL), Less than Container Load (LCL), and reefer cargo.

However, back-to-town cargo movements are excluded across all components.

Notification Details

Notification No. 65/2025-26

Date: 19/03/2026

Read More: Composite GST SCN for Multiple Years Held Unsustainable: Kerala High Court

Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 7+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started her career as a freelance tax reporter in the leading online legal news companies.

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