To assist Indian exporters in overcoming disruptions caused by the continuing crisis in West Asia, the government established a new program on Thursday dubbed Resilience and Logistics Intervention for Export Facilitation (RELIEF), with the goals of maintaining uninterrupted trade and safeguarding the nation’s market share.
The RELIEF plan, according to Commerce Secretary Rajesh Agrawal, is a component of the government’s overall Export Promotion Mission.
He called it a well-thought-out assistance plan to keep export flows stable during the present crisis.
“The plan will offer targeted assistance to exporters, particularly small and medium-sized businesses, who are experiencing operational difficulties as a result of disruptions in shipping and logistics,” Agrawal stated.
He said that the emphasis would be on the 17–18 locations that had been especially hard hit by the events in West Asia and the Gulf region.
He continued, saying that the initiative’s primary objective is to make sure that exports continue as seamlessly as possible in spite of the difficulties.
Agrawal stated, “The plan is anticipated to alleviate the load of expensive freight costs and increasing insurance rates, which have risen dramatically as a result of the conflict. ”
The RELIEF program will provide coverage for a month for both insured exporters and non-ECGC insured MSME exporters, as well as assistance for upcoming shipments for a period of up to three months.
The program’s expenses will be covered by the current funding for the Export Promotion Mission.
Additionally, the government is addressing the problems facing exporters via an inter-ministerial group.
Agrawal observed that disruptions in important routes are causing shipments to be delayed and, in certain instances, not to reach their intended destination.
Last month, the United States and Israel conducted a joint strike on Iran, which has affected vital maritime and aviation routes in the area, and this is the present situation.
This has raised oil prices and logistic expenses, which has had an impact on international commerce. During what it referred to as “extraordinary times,” the government hopes that the RELIEF program will assist exporters in overcoming these difficulties and keep commodities moving.
At the same time, Lav Agarwal, the Director General of Foreign Trade, revealed a budget of approximately Rs 500 crore for the RELIEF program, which would offer targeted and time-bound assistance. The implementing organization will be the Export Credit Guarantee Corp, which is owned by the government.