India Extends Export Support Measures Amid West Asia Shipping and Trade Uncertainty

Photo: IANS

The government has extended key export-support measures under the RELIEF and Remission of Duties and Taxes on Exported Products (RoDTEP) schemes as geopolitical tensions and logistics disruptions in West Asia continue to create uncertainty for Indian exporters.

The Department of Commerce has extended the operational timelines under Component II of RELIEF — Resilience & Logistics Intervention for Export Facilitation — a time-bound measure introduced under the Export Promotion Mission. The government has said the extension is intended to strengthen export resilience and help maintain trade flows amid continuing geopolitical and shipping-related challenges.

Component II of RELIEF encourages exporters to obtain ECGC cover for upcoming shipments to specified regions, with risk coverage of up to 95 per cent. The facility is available for Stand Alone Policies and Whole Turnover Policies obtained on or after March 16, 2026.

Eligible cargo includes Full Container Load (FCL), Less than Container Load (LCL) and reefer containers, while energy shipments are excluded. Under the intervention, exporters will not face an increase in premium beyond the pre-disruption level for the eligible period.

The RELIEF scheme was launched on March 19 to assist exporters dealing with higher freight costs, increased insurance premiums and risks associated with war-related disruptions along the Gulf and wider West Asia maritime corridor.

Separately, the government has extended the RoDTEP scheme until December 31, 2026. The extension covers exports by units in the Domestic Tariff Area, Advance Authorisation holders, Special Economic Zone units and Export Oriented Units.

RoDTEP provides refunds for embedded and unrebated central, state and local duties, taxes and levies incurred on exported products, including cumulative indirect taxes paid at earlier stages of production.

The government said the existing RoDTEP rates and value caps notified under Appendix 4R and Appendix 4RE as applicable on September 30 will remain unchanged during the extended period.

The measures are intended to reduce some of the additional cost and risk pressures faced by exporters as international shipping routes remain vulnerable to geopolitical disruptions. For exporters, continued insurance support under RELIEF and the extension of RoDTEP provide greater certainty while planning shipments and pricing goods for overseas markets.

The latest decisions also form part of broader efforts to maintain the competitiveness of Indian exports at a time when freight costs, insurance expenses and supply-chain disruptions can affect exporters' ability to compete in international markets.
 

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