RELIEF Scheme for Exporters: ₹497 Crore War-Risk Cover
Why in the news
RELIEF acts as a war buffer to guard India’s export momentum against turmoil on the West Asian trade route. On 17 April 2026 the government added Egypt and Jordan, since the conflict’s logistics disruption has reached the wider North Africa and West Asia corridor.
Key facts
- Outlay: ₹497 crore, under the Export Promotion Mission (EPM).
- Implementer: ECGC Limited.
- Purpose: stop imported logistics inflation hurting Indian traders.
- EPM outlay: ₹25,060 crore for 2025-2031.
Components
| Component | Who | Benefit |
|---|---|---|
| I | Existing ECGC policyholders | 100% cover for war or political loss; premiums frozen at pre-war rates |
| II | New exporters after 16 March 2026 | 95% risk backstop with fresh Whole Turnover Policies |
| III | Non-insured MSMEs | 50% reimbursement of extraordinary surcharges, up to ₹50 lakh |
Why it was needed
- Since February 2024, Gulf and Red Sea routes saw war risk surcharges, with insurance premiums spiking.
- Diversions around the Cape of Good Hope raised time and fuel costs.
- MSMEs often cannot absorb sudden 50-100% jumps in shipping costs.
Countries covered (12)
- Original ten: UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel, Yemen.
- Added in April 2026: Egypt and Jordan.
Exam angle
- Nodal agency: ECGC Limited; umbrella: Export Promotion Mission.
- Numbers: ₹497 crore, ₹50 lakh cap, 100%, 95% and 50%.
- Related terms: war risk surcharge, Whole Turnover Policy.