The Directorate General of Foreign Trade (DGFT) has announced the extension of enhanced insurance cover for exports to West Asia until September 30, 2026. According to the notification issued on Monday, this extension supports Indian exporters and mitigates logistics challenges arising from the continuing West Asia Crisis. The enhanced cover was originally available for shipments sent between March 16 and June 15, but has now been extended to provide continued support for exporters facing credit risks. As per the latest DGFT notification, the eligibility timelines under component II of EPM RELIEF intervention are extended up to September 30, 2026 to support Indian exporters and address the logistics challenges that have emerged from the continuing West Asia Crisis.
Under the RELIEF (Resilience and Logistics Intervention for Export Facilitation) scheme, exporters taking credit risk insurance from Export Credit Guarantee Corporation (ECGC) are eligible for credit risk cover of up to 95 per cent. This represents an increase from the normal ECGC coverage of 85 per cent to 90 per cent. The enhanced risk cover, originally announced on March 19, was part of the Resilience and Logistics Intervention for Export Facilitation (RELIEF) scheme under the Export Promotion Mission (EPM) to support exports to West Asia in view of the Iran war. The government is bearing the fee for the enhanced cover, providing additional support to exporters during challenging market conditions amidst the ongoing West Asia crisis.
To prevent high logistics costs from crushing margins, premiums under the second component of RELIEF are locked at pre-disruption rates. The government absorbs the excess risk cost, ensuring ECGC does not hike premiums for the riskier route. The government has also decided to directly reimburse ECGC for any claim payouts that exceed what is ordinarily payable under standard ECGC policies. This comprehensive risk management approach ensures that exporters receive the same premium structure as before the crisis while maintaining adequate financial protection against payment defaults.
Component II of the EPM RELIEF intervention facilitates export credit insurance for upcoming shipments to the Gulf, West Asia, and North Africa. The enhanced cover applies to export consignments to West Asia and includes goods being transshipped through the region. As reported by Rediff Money, the scheme provides crucial financial protection for exporters taking credit risk insurance from ECGC for their shipments to the region, with the eligibility timelines now extended to September 30, 2026 to bolster trade amidst the ongoing West Asia crisis. The enhanced cover was originally available for shipments sent between March 16 and June 15, but has now been extended to provide continued support for exporters facing credit risks.
