Flexible EPM framework enables timely response to extraordinary freight, insurance and war-risk escalation

Recent developments, including heightened security concerns around the Strait of Hormuz, have led to vessel diversions, longer sailing routes, congestion at transshipment hubs and emergency conflict-linked surcharges. These developments have increased logistics costs and created operational uncertainty for export consignments moving to or through the region.

In view of the evolving geopolitical situation in West Asia and its impact on maritime logistics across the Gulf region, the Government has approved a time-bound and targeted intervention called RELIEF – Resilience & Logistics Intervention for Export Facilitation under the Export Promotion Mission (EPM). The intervention is aimed at supporting Indian exporters affected by extraordinary freight escalation, heightened insurance premia and war-related export risks arising from disruptions in the Gulf and wider West Asia maritime corridor.

The approval of RELIEF reflects the Government’s commitment to respond swiftly to external disruptions affecting India’s trade flows.

As part of the coordinated whole-of-government response to the crisis situation, an Inter-Ministerial Group (IMG) on Supply Chain Resilience is operationalised on March 02, 2026 to monitor the situation and coordinate facilitation measures. The IMG commenced daily review meetings from March 03, 2026, bringing together multiple Ministries/Departments, financial institutions, logistics stakeholders and exporter associations. Based on IMG deliberations, several operational measures were implemented, including procedural relaxations for stranded cargo movement, enhanced coordination at ports, waivers of storage and dwell time charges for affected cargo at the ports, advisories to promote transparency in shipping line pricing, and strengthened monitoring of insurance risk developments and inland logistics movement. These coordinated efforts helped ensure real-time assessment of ground-level challenges and supported the design of a targeted financial-risk mitigation intervention.

RELIEF has been structured to provide support across the export cycle by covering the shipments already left  during the disruption period as well as prospective exports planned to the affected region.

Under the approved framework, ECGC Ltd. (Formerly Export Credit Guarantee Corporation of India Ltd.), wholly owned by Government of India (Ministry of Commerce & Industry), has been designated as the nodal and implementing agency responsible for verification, claim processing, disbursement and monitoring. ECGC’s established experience in providing export credit risk cover against commercial and political risks, including war-related contingencies, is expected to ensure credible and timely delivery of assistance.

The RELIEF intervention comprises the following 3 complementary components covering consignments destined to countries in the region such as United Arab Emirates, Saudi Arabia, Kuwait, Israel, Qatar, Oman, Bahrain, Iraq, Iran and Yemen, meant either for delivery or for transshipment:

• First, exporters who have already obtained ECGC credit insurance cover for eligible consignments will benefit from upto 100% risk coverage, over and above the existing ECGC cover, during the eligible period (February 14, 2026 till March 15, 2026), thereby ensuring enhanced protection without additional financial burden.
• Second, exporters planning upcoming consignments, during the next three months (March 16, 2026 till June 15, 2026), will be encouraged to obtain ECGC cover with Government support for upto 95% risk coverage, over and above the existing ECGC cover, which will help sustain exporter confidence and facilitate continued shipment flows despite logistics uncertainties.
• Third, recognising that some MSME exporters may not have availed credit insurance (February 14, 2026 till March 15, 2026), but are facing extraordinary freight and insurance surcharge burdens, RELIEF includes a partial reimbursement (upto 50%) mechanism for eligible non-ECGC-insured MSME exporters. This support will be extended subject to prescribed conditions, documentary verification and notified ceilings (upto Rs. 50 lakhs per exporter), and is intended to provide timely relief against conflict-related logistics cost escalation.

Implementation of RELIEF under Export Promotion Mission will be undertaken with an approved financial outlay of Rs. 497 Crores under the Mission. ECGC will maintain a dashboard-based monitoring system to enable real-time tracking of claims and fund utilisation. The EPM Steering Committee will periodically review the operation of the intervention in light of evolving geopolitical conditions and may recommend calibrated modification, continuation or withdrawal as necessary.

Through RELIEF, the Government aims to mitigate the immediate impact of logistics disruptions, protect exporter confidence, prevent order cancellations and safeguard employment in export-linked sectors. The intervention also reinforces India’s commitment to maintaining resilience and competitiveness in global trade during periods of uncertainty.

Key Highlights of RELIEF under EPM

• Government has approved RELIEF – Resilience & Logistics Intervention for Export Facilitation under the Export Promotion Mission.
• Intervention responds to logistics disruptions and cost escalation in the Gulf and West Asia maritime corridor.
• ECGC will act as nodal implementing agency for risk coverage and reimbursement mechanism.
• RELIEF covers both eligible past shipments and prospective exports, with a strong focus on MSME support.
• Intervention will be funded under EPM and reviewed periodically based on geopolitical developments.