Context:
The Government of India has approved the RELIEF (Resilience & Logistics Intervention for Export Facilitation) Scheme to support exporters impacted by maritime disruptions in West Asia.
Key Highlights:
- Government Initiative / Policy Details
- Launched under the Export Promotion Mission (EPM).
- A time-bound, targeted intervention addressing export risks due to geopolitical tensions.
- Implemented by ECGC Ltd. (Export Credit Guarantee Corporation).
- Key Features
- Enhanced Risk Coverage (Past Shipments):
- Up to 100% coverage for shipments between 14 Feb – 15 Mar 2026.
- Support for Prospective Exports:
- Up to 95% risk coverage for shipments between 16 Mar – 15 June 2026.
- MSME Support:
- Up to 50% reimbursement (max ₹50 lakh) for freight and insurance surcharges.
- Regional Scope:
- Covers exports to/transshipment via UAE, Saudi Arabia, Kuwait, Israel, Qatar, Oman, Bahrain, Iraq, Iran, Yemen.
- Operational Reliefs:
- Waiver of storage and dwell time charges.
- Procedural relaxations for stranded cargo.
- Monitoring Mechanism:
- Dashboard-based tracking by ECGC.
- Periodic review by EPM Steering Committee.
- Significance / Applications / Concerns
- Mitigates risks from freight escalation and war-related disruptions.
- Supports export continuity and MSME resilience.
- Helps maintain India’s trade competitiveness.
Relevant Prelims Points:
- ECGC Ltd.: Provides export credit insurance to Indian exporters.
- Export Promotion Mission (EPM): Initiative to boost exports and trade facilitation.
- Trade Risk Insurance: Covers losses due to political/commercial risks.
Relevant Mains Points:
- Impact of Geopolitics on Trade:
- Conflicts disrupt shipping routes, insurance costs, and supply chains.
- Support to MSMEs:
- MSMEs are highly vulnerable to external shocks and logistics costs.
- Financial assistance improves export sustainability.
- Policy Significance:
- Enhances export resilience during crises.
- Demonstrates proactive government intervention in trade facilitation.
- Challenges:
- Fiscal burden on government.
- Temporary relief vs need for structural trade reforms.
- Way Forward
- Diversify export routes and markets.
- Strengthen logistics infrastructure and supply chain resilience.
- Expand insurance coverage and digital monitoring systems.
UPSC Relevance:
• GS 3: Economy – Export promotion, logistics, trade policy
• GS 2: Governance – Government interventions for economic resilience