India Launches Rs 500 Crore RELIEF Scheme for Exporters Hit by West Asia Crisis

Commerce Secretary Rajesh Agrawal announced the RELIEF scheme, saying it is part of the government's broader Export Promotion Mission.

He described it as a carefully designed support package to stabilise export flows during the current crisis.

"The scheme will provide targeted support to exporters, especially small and medium enterprises, who are facing operational challenges due to disruptions in shipping and logistics," Agrawal said.

"The focus will be on 17-18 destinations that have been particularly affected by the situation in West Asia and the Gulf region," he stated.

He added that the main aim of the initiative is to ensure that exports continue as smoothly as possible despite the challenges.

"The scheme is expected to reduce the burden of high freight costs and rising insurance premiums, which have increased sharply due to the conflict," Agrawal mentioned.

RELIEF will cover both insured exporters and non-ECGC insured MSME exporters for one month, along with support for future shipments for up to three months.

The expenditure for the scheme will be met from the existing allocation under the Export Promotion Mission.

The government is also working through an inter-ministerial group to address the issues being faced by exporters.

Agrawal noted that shipments are getting delayed and, in some cases, are not reaching their destinations due to disruptions in key routes.

The current situation follows last month's joint attack by the United States and Israel on Iran, which has impacted major shipping and air corridors in the region.

This has pushed up oil prices and increased logistics costs, affecting global trade. The government hopes that the RELIEF scheme will help exporters navigate these challenges and maintain the flow of goods during what it called "extraordinary times."

Meanwhile, Lav Agarwal, the Director General of Foreign Trade, announced the outlay of nearly Rs 500 crore for RELIEF scheme that will provide focused and time-bound intervention. The government-owned Export Credit Guarantee Corp will be the implementing agency.

- IANS