To give relief to exporters, govt floats Rs 497-cr scheme, Pg6

Key Highlights:

• The Commerce and Industry Ministry announced a ₹497-crore RELIEF scheme to support exporters facing trade disruptions due to logistical challenges and rising freight and fuel costs caused by the conflict in West Asia.
• The scheme focuses on consignments destined for or trans-shipping to countries including the UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel, and Yemen.
• RELIEF includes automatic extension of export obligations, logistical support, and potential financial measures to manage shipping delays.
• The scheme provides up to 100% risk coverage for exporters with Export Promotion Capital Goods (EPCG) credit insurance from February 14, 2026, to March 15, 2026.

Detailed Insights:

• The RELIEF scheme aims to address challenges faced by exporters due to the ongoing crisis, including instances where exports to West Asia have been disrupted.
• The scheme encourages exporters to obtain ECGC cover with government support for up to 95% risk coverage from March 16, 2026, to June 15, 2026, to maintain exporter confidence.
• MSME exporters without credit insurance from February 14, 2026, to March 15, 2026, can receive partial reimbursement (up to 50%) for freight and insurance surcharges, capped at ₹50 lakh per exporter.
• An inter-ministerial group is addressing warehousing and logistics challenges to further support exporters impacted by the conflict.

Key Concepts Involved:

• Export Promotion Capital Goods (EPCG): A scheme allowing import of capital goods at zero duty for producing quality goods and services to enhance export competitiveness.
• ECGC (Export Credit Guarantee Corporation of India): Provides export credit insurance to protect exporters against losses from payment defaults by overseas buyers.
• MSME (Micro, Small and Medium Enterprises): Enterprises classified based on investment and turnover, playing a vital role in economic growth and employment.