RELIEF Scheme Component II Extended Till March 2027

Department of Commerce Extends RELIEF Scheme Timelines

Context:

Recently, The Department of Commerce has extended the eligibility and validity period under Component II of the RELIEF scheme until 31 March 2027. The extension aims to support Indian exporters facing continuing geopolitical and maritime-logistics disruptions in West Asia.

What is the RELIEF Scheme?

• • • RELIEF stands for Resilience & Logistics Intervention for Export Facilitation. It was launched on 19 March 2026 under the Export Promotion Mission (EPM).
    • The scheme was introduced to assist Indian exporters affected by:
      • Extraordinary freight escalation
      • Higher insurance premiums
      • War-related export risks
      • Disruptions in the Gulf and wider West Asian maritime corridor
    • The Export Credit Guarantee Corporation (ECGC) plays a key role in implementing the intervention.

Component II of RELIEF:

Component II focuses on insurance support for upcoming export shipments.

Under the extended framework:

• • • Exporters can obtain 95% risk coverage through eligible ECGC cover.
    • It applies to Stand Alone Policies and Whole Turnover Policies obtained on or after 16 March 2026.
    • The eligibility timeline has been extended up to 31 March 2027.
    • The premium paid by exporters will not exceed the pre-disruption level during the eligible period.

Eligible Cargo:

The support covers:

• • • Full Container Load (FCL)
    • Less than Container Load (LCL)
    • Reefer containers

However, energy shipments are excluded from this component.

Significance for Indian Exports:

• • • West Asia is an important maritime corridor for India's international trade. Disruptions in the region can increase: Geopolitical tensions, shipping risks, freight costs, insurance costs, higher export costs
    • The extension therefore provides exporters greater certainty while dealing with continuing logistical and geopolitical uncertainties.

Related Export Support:

• • • Alongside RELIEF, the government has also extended the RoDTEP (Remission of Duties and Taxes on Exported Products) scheme until 31 December 2026. Existing rates and value caps remain unchanged.
    • RoDTEP seeks to refund eligible embedded Central, State and local duties, taxes and levies that are not otherwise refunded to exporters.

Conclusion:

The extension of Component II of RELIEF demonstrates the importance of trade-risk management and resilient supply chains amid geopolitical uncertainty. By providing enhanced insurance coverage and maintaining premium protection, the measure seeks to reduce risks faced by Indian exporters and sustain international trade flows.