Strait of Hormuz Crisis: Govt Rolls out ₹497 Crore RELIEF Scheme To Tackle Export Disruptions in Gulf Region
Moneylife Digital Team 19 March 2026
The Indian government on Thursday approved a ₹497 crore RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme under the export promotion mission to support Indian exporters hit by rising freight costs, insurance premia and war-related risks due to disruptions in the Gulf and wider West Asia region.
 
The move comes amid heightened security concerns around the Strait of Hormuz, which have led to vessel diversions, longer shipping routes, congestion at transhipment hubs and emergency surcharges, significantly increasing logistics costs and creating uncertainty for export consignments.
 
According to a release issued by Union ministry of commerce & industry, the time-bound intervention is aimed at mitigating the impact of these disruptions and ensuring continuity of trade flows. The scheme will cover both shipments already affected during the disruption period as well as upcoming exports to countries including the UAE, Saudi Arabia, Qatar and Israel.
 
Under the framework, ECGC Ltd (export credit guarantee corporation of India) has been designated as the nodal implementing agency responsible for verification, claim processing, disbursement and monitoring.
 
The RELIEF scheme comprises three components. Exporters who had already obtained ECGC insurance cover for consignments between 14th February and 15 March 2026 will receive up to 100% additional risk coverage over and above existing cover without any extra cost. For shipments planned between 16th March and 15 June 2026, exporters will be supported with up to 95% risk coverage to sustain confidence and maintain shipment flows despite ongoing uncertainty. 
 
In addition, exporters from the micro, small and medium enterprise (MSME) category who did not avail insurance cover during the disruption window will be eligible for partial reimbursement of up to 50% of increased freight and insurance costs, subject to a ceiling of ₹50 lakh per exporter.
 
The government says the intervention follows coordinated efforts by an inter-ministerial group on supply chain resilience, which has been conducting daily reviews since early March to address logistics challenges. Measures such as procedural relaxations for stranded cargo, waivers of storage charges at ports, and advisories to improve transparency in shipping line pricing have already been implemented.
 
A dashboard-based system will be used by ECGC to track claims and fund utilisation in real time, while the export promotion mission steering committee will periodically review the scheme and make adjustments based on evolving geopolitical conditions.
 
The government says the RELIEF scheme is expected to help offset immediate cost pressures, prevent order cancellations and protect employment in export-oriented sectors, while reinforcing India’s resilience in global trade during a period of heightened uncertainty.
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