The Department of Commerce has extended the operational timeline of Component II of RELIEF (Resilience and Logistics Intervention for Export Facilitation), a government support programme for exporters facing logistics challenges in West Asia. The extension, notified on 30 September 2026, aims to help Indian exporters manage escalated costs and risks tied to ongoing geopolitical tensions affecting maritime routes through the Gulf and surrounding regions.
RELIEF was introduced on 19 March 2026 as a response to extraordinary freight rates, elevated insurance premiums and war-related export risks that emerged from disruptions along West Asia maritime corridors. The scheme operates as part of the broader Export Promotion Mission (EPM).
Key facts
- Extension notified on 30 September 2026 under Notification No.37/2026-27
- Component II offers 95% risk coverage through ECGC (Export Credit Guarantee Corporation) insurance
- Policies eligible if obtained on or after 16 March 2026
- Covers Full Container Load (FCL), Less than Container Load (LCL) and Reefer containers
- Energy shipments are excluded from coverage
- Premium rates frozen at pre-disruption levels for eligible export periods
What Component II covers
Component II encourages Indian exporters to obtain ECGC insurance cover for shipments bound for specified regions affected by the West Asia logistics crisis. The high coverage level of 95% means the insurance company bears most of the financial risk if a shipment faces delays, damage or loss due to geopolitical events.
The scheme applies to both Stand Alone Policies (covering specific shipments) and Whole Turnover Policies (covering an exporter’s entire export business to eligible regions). Exporters can insure containerised cargo in three forms: full containers, partial containers shared with other shippers, and refrigerated containers used for perishable goods. Agricultural exports, processed foods and other temperature-sensitive products moving in reefer containers are therefore covered.
Energy-related shipments, including oil, gas and related products, fall outside the scheme’s scope.
Premium protection mechanism
A critical feature of RELIEF is that insurance premiums charged to participating exporters cannot rise above the rates that existed before the West Asia disruptions began. This price ceiling protects exporters from absorbing the full cost of the elevated insurance risk premiums that shipping companies have imposed due to heightened geopolitical risk. Premiums typically rise when insurers face greater claims risk, but this scheme locks them in at pre-crisis levels, effectively subsidising part of the insurance cost for eligible exporters.
How the extension helps exporters
By extending Component II’s timeline, the government is signalling that West Asia logistics challenges are expected to persist. Exporters relying on Gulf shipping routes for markets in the Middle East, Europe via Suez Canal, and Africa face continued uncertainty about transit times and port operations. The extension allows more exporters to access affordable, high-coverage insurance for a longer period.
Without such protection, Indian exporters would either absorb higher insurance costs, pass them on to buyers and risk losing orders, or reroute shipments via longer alternate routes, driving up freight costs further. RELIEF mitigates these pressures by making ocean freight insurance predictable and affordable even as market conditions remain volatile.
What this means for you
If you are an exporter shipping containerised cargo (except energy products) to West Asia and neighbouring regions, you can now access ECGC insurance at pre-disruption premium rates through either a specific shipment policy or a comprehensive turnover policy. The 95% coverage means the insurer assumes nearly all commercial and political risks tied to the current geopolitical situation, protecting your cash flow if shipments face delays or loss.
This protection applies only to policies taken out on or after 16 March 2026. Older policies do not qualify. Check with your bank or freight forwarder on how to enrol in the scheme for your next shipments.
For businesses importing perishable goods from the region, reefer container coverage under RELIEF can be particularly valuable given the higher spoilage risk associated with delays on extended shipping routes.
Connection to Export Promotion Mission
RELIEF operates as part of the Government of India’s Export Promotion Mission (EPM), a broader framework aimed at sustaining India’s export competitiveness despite external shocks. The extension reflects the government’s view that geopolitical risks in West Asia shipping will remain significant enough to warrant continued policy support for exporters dependent on these routes.