Overview In response to heightened security concerns in the Strait of Hormuz and consequent logistics bottlenecks in West Asia, the Ministry of Commerce & Industry has approved RELIEF . The scheme is part of the Export Promotion Mission and aims to safeguard Indian exporters from extraordinary cost escalations caused by the Gulf‑region crisis. Key Developments Formation of an IMG on 02 Mar 2026, holding daily meetings from 03 Mar 2026. Procedural relaxations for stranded cargo, waivers of storage and dwell‑time charges, and advisories for transparent shipping‑line pricing. Designation of ECGC Ltd. as the nodal implementing agency for verification, claim processing and disbursement. Financial outlay of Rs 497 crore earmarked for the scheme. Structure of the RELIEF Scheme Risk‑cover extension (14 Feb 2026 – 15 Mar 2026): Exporters already holding ECGC credit‑insurance receive up to 100 % additional coverage for eligible consignments. Future‑export incentive (16 Mar 2026 – 15 Jun 2026): Exporters planning shipments in the next three months can obtain ECGC cover with up to 95 % government‑backed risk coverage. MSME reimbursement: Non‑insured micro, small and medium enterprises ( MSMEs ) facing extraordinary freight and insurance surcharges can claim up to 50 % reimbursement, subject to a ceiling of Rs 50 lakhs per exporter. Important Facts The scheme targets consignments destined for or trans‑shipped through United Arab Emirates, Saudi Arabia, Kuwait, Israel, Qatar, Oman, Bahrain, Iraq, Iran and Yemen. ECGC will maintain a dashboard‑based monitoring system for real‑time tracking of claims and fund utilisation. The EPM Steering Committee will periodically assess the scheme against evolving geopolitical conditions. UPSC Relevance Understanding export credit insurance mechanisms and government interventions in trade helps answer GS‑III questions on external sector resilience, trade facilitation, and crisis management. The case illustrates how India uses targeted fiscal tools, inter‑ministerial coordination, and public‑sector agencies to mitigate supply‑chain shocks—topics frequently examined in GS‑III and GS‑IV (ethics of governance). Way Forward Continued monitoring by the IMG and periodic reviews by the EPM Steering Committee will determine whether the scheme needs scaling, modification, or withdrawal. Strengthening domestic logistics, diversifying export markets, and building strategic reserves of critical inputs are complementary strategies to enhance long‑term resilience.