The central government unveiled a new initiative called Resilience & Logistics Intervention for Export Facilitation (RELIEF), allocating Rs 497 crore to support exporters facing increasing freight and insurance expenses due to the West Asia crisis.

The relief package will be part of the Export Promotion Mission (EPM) and will be executed by the Export Credit Guarantee Corporation of India.

The funding for the new program will come from the current budget allocated for the Export Promotion Mission.

Commerce Secretary Rajesh Agrawal mentioned that the crisis in the Middle East has affected trade in India. Indian exporters sending goods to the area are encountering difficulties, as certain shipments are failing to arrive at their locations, which is causing worries about forthcoming exports.

Consequently, this new initiative, concentrating on the 17–18 affected destinations has been introduced, intended to alleviate the challenges encountered by exporters connected to the area.

The commerce ministry characterized the RELIEF package as “a precisely tailored support initiative to stabilize India’s export trends and safeguard India’s market share amid the crisis.”

The updated plan adds extra functionalities to three parts of the EPM. The first option safeguards shipments that are already insured within the immediate one-month period, the second option enhances ECGC adoption for future shipments over the next three months, and the third option offers partial reimbursement for exceptional freight and insurance expenses within one month.

Under Component I, premiums will remain at or below pre-disruption levels for qualifying periods, while the Export Credit Guarantee Corporation of India (ECGC) will compensate for losses due to war-related and related political risks in impacted nations.

The plan offers improved insurance protection covering losses of up to 100 percent, contingent upon validation and accepted conditions.

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The government will compensate ECGC for payments made that exceed the limits of the current policy coverage. Nonetheless, cargo cases returning to town will not be eligible for government assistance.

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The payment system states that qualifying shipments need to possess a bill of lading or airway bill generated within the specified timeframe and should be directed towards covered areas or transshipment paths.

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ECGC will verify claims associated with war or political risks, and the agency will settle claims for the entire loss amount. The government will cover only the amount that exceeds standard policy payments.