India unveils ₹497-cr RELIEF package to shield exporters from war disruptions

Harsh Kumar & Rituraj Baruah

New Delhi: Amid the escalating war between US-Israel and Iran and its spreading impact on maritime logistics across the Gulf region, India on Thursday announced a major relief package—RELIEF (resilience & logistics intervention for export facilitation ), under its Export Promotion Mission. The package will be undertaken with an financial outlay of ₹497 crore under the mission, the government said.

The Export Credit Guarantee Corporation of India (ECGC) will maintain a dashboard-based monitoring system to enable real-time tracking of claims and fund utilization, it said.

The intervention is aimed at supporting Indian exporters affected by the extraordinary freight escalation, heightened insurance premiums and war-related export risks arising from the US-Israel war with Iran across the wider West Asia maritime corridor. The conflict in West Asia has disrupted supply chains, resulting in rise in prices of key inputs required for manufacturing.

Due to the latest escalation of attacks in the region, energy prices saw a spurt in the global markets, with benchmarks surging over 5% on Thursday and the Indian crude basket hitting record highs. Amid this energy crisis, India has also mandated oil and gas firms to give ball-by-ball operational metrics to help close monitoring and action.

Earlier, the government had rolled out a coordinated customs and logistics exercise to help exporters handle stranded or returned cargo following the closure of the crucial Strait of Hormuz, through which about 20% of energy-laden global vessels move.

According to the official statement, the RELIEF intervention comprises three complementary components covering consignments destined to countries in the region such as United Arab Emirates (UAE), 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 (14 February 2026 till 15 March 2026), thereby ensuring enhanced protection without additional financial burden,” the government statement said.

It also noted that the exporters planning upcoming consignments, during the next three months–16 March to 15 June–will be encouraged to obtain ECGC cover with government support for up to 95% risk coverage over and above the existing ECGC cover, which will help sustain exporter confidence and facilitate continued shipment flows despite logistics uncertainties.

Recognizing that some micro and small and medium enterprises (MSME) exporters may not have availed credit insurance during the 14 February-15 March period but are facing extraordinary freight and insurance surcharge burdens, RELIEF includes a partial reimbursement mechanism of up to 50% for eligible non-ECGC-insured MSME exporters.

“This support will be extended subject to prescribed conditions, documentary verification and notified ceilings (up to ₹50 lakh per exporter), and is intended to provide timely relief against conflict-related logistics cost escalation,” the government said.

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 reinforces India’s commitment to maintain resilience and competitiveness in global trade during periods of uncertainty, it said.

Addressing the media on the developments in West Asia, Rajesh Kumar Sinha, special secretary, union ministry of ports, shipping and waterways said 22 Indian-flagged vessels with 611 Indian seafarers are stuck in the western Persian Gulf region, and that various apex agencies are coordinating to closely monitor the situation.

He added that India’s maritime sector continues to operate smoothly, with no congestion reported across ports, as confirmed by State Maritime Boards, including Gujarat, Maharashtra, Goa, Keralam, Andhra Pradesh and Puducherry.

"Ports are closely monitoring vessel movements and cargo operations and have created additional storage capacity, including measures at Jawaharlal Nehru Port Authority (JNPA), V.O.Chidambaranar Port (VOCPA), Visakhapatnam Port and Mundra. Deendayal Port Authority has created additional storage capacity, including allocation of around 54 acres of land, along with waivers on charges and operational support measures, and has provided a 50% discount on harbour mobile crane charges for port users," Sinha said.

Crude oil vessel Jag Laadki arrived at Mundra Port at 6am on 18 March and it is currently discharging cargo that is likely to be completed on 19 March, while another vessel with Russian crude booked by Mangalore Refinery and Petrochemicals Ltd is expected to reach India on 21 March, he said.

Crude prices on Thursday surged over 6% with Brent at a high of $118 per barrel after fresh attacks on key energy infrastructure in West Asia heightened fears of a broader supply shock.

The conflict’s shift toward targeting energy infrastructure has amplified fears of a prolonged supply shock, pushing oil prices higher and exposing import-dependent economies such as India to fresh risks.

On a question related to the impact of the escalation on India's efforts to secure safe passage for Indian-flagged vessels, the spokesperson of the ministry of external affairs, Randhir Jaiswal said: “We continue to remain in touch with all concerned countries to ensure that energy security needs are met and our energy supplies have an unimpeded transit.”

On March 9, prices crossed the $100 per barrel for the first time in four years and reached nearly $119 before easing to around $100. The region has now seen fresh attacks on Iran's South Pars gas field and retaliatory attacks on energy assets in Qatar, Kuwait and Saudi Arabia.

The Indian crude basket price has also hit an all-time high of $146.39 a barrel. The basket comprises sour grade (Oman & Dubai average) and sweet grade (Brent Dated) crude oil processed in Indian refineries in the ratio of 78.71:21.29.

On the surge on the Indian basket and the impact of rising prices on the oil marketing companies, Sujata Sharma, joint secretary, marketing and oil refinery at the petroleum and natural gas ministry, said the basket's math was “a complex formula” and while "…pressure (on prices) is there, definitely, but till now, there is no price increase (for petrol and diesel)."

Oil marketing companies (OMCs) had however, earlier this month increased the price of domestic liquefied petroleum gas (LPG) by ₹50 per cylinder and that of commercial LPG by around ₹115 a cylinder.

A report by Kotak Institutional Equities on Thursday said that with no retail pricing freedom, OMCs will have to absorb higher crude and freight and insurance costs. “The negative public sentiment amid LPG shortages makes large petrol/diesel price hikes very difficult. OMCs have benefited from elevated marketing margins in the past few years. However, weak earnings are now set to erode the buffer created. Post-crisis, new capex for LPG storage is likely,” it said.

The oil ministry's Petroleum and Natural Gas (Furnishing of Information) Order, 2026 requires refiners, LNG importers, pipeline operators, city gas distributors and petrochemical firms, across both public and private sectors, to regularly—daily, weekly, monthly—report granular data to the ministry's Petroleum Planning and Analysis Cell (PPAC), according to a notification by the petroleum ministry.

Addressing the media, Sharma said the move aims to give legal enforcement mechanism to PPAC to collect such data; it is to give it a “legal strength”, she said.

"So, now everybody has to give the information. PPAC is getting it (even now). But now, with legal force, it will be better implementable," Sharma added