Government extends RELIEF scheme as low-margin exports struggle amid West Asia crisis

1. Article summary

The Indian Government has extended its Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme until 31 March 2027, providing continued support to exporters affected by ongoing geopolitical tensions and maritime disruptions across the Middle East. The initiative offers eligible exporters enhanced insurance protection against war-related and political risks, with coverage of up to 95% for qualifying shipments and premiums protected from increases beyond pre-disruption levels.

The extension comes as elevated freight costs, port congestion and unpredictable shipping schedules continue to place pressure on international trade. India's exports to several key Middle Eastern markets have declined significantly, with shipments to the United Arab Emirates falling nearly 11%, Saudi Arabia declining 5.3% and Iraq dropping almost 50% between April and September 2026 compared with the same period last year. Agricultural products, textiles and other low-margin exports have been particularly affected by rising logistics costs and delayed payments.

The disruption is also reshaping regional shipping networks. According to World Trade Organization figures cited in the report, container throughput at Dubai's Jebel Ali port fell approximately 60% year-on-year during the first half of 2026, while alternative ports in Oman and Saudi Arabia experienced increased activity. The shift highlights how ongoing conflict is influencing vessel movements, cargo routing and regional port demand.

2. What shippers should consider

• Continued freight cost pressures: Businesses importing or exporting through the Middle East should anticipate ongoing freight rate volatility, additional logistics costs and potential shipping delays as geopolitical uncertainty continues.
• Alternative shipping routes: Changes in vessel routing and increased activity at alternative ports, including Sohar and Salalah in Oman, may create opportunities for cargo movement but could also affect transit times and available capacity.
• Cargo insurance and risk management: Shippers should review their cargo insurance arrangements and understand the limitations of standard policies, particularly where shipments are exposed to war-related or political risks.
• Regional port performance: Significant changes in container volumes across major Middle Eastern ports may influence vessel schedules, transhipment connections and the reliability of established shipping routes.
• Supply chain planning: Businesses trading with India and the Middle East should maintain flexibility in shipment scheduling, allow for potential delays and communicate regularly with logistics providers to manage changing conditions.

3. Moving forward

India's decision to extend export support measures into 2027 reflects the continuing impact of geopolitical instability on international trade and maritime logistics. With freight costs, port operations and shipping routes remaining vulnerable to disruption, businesses should continue reviewing their supply chain strategies and maintaining flexibility in their transport arrangements. Monitoring regional developments and planning shipments proactively will remain important in managing costs, protecting cargo and minimising delays.

For information specific to your freight, customs or supply chain requirements, reach out to United Carriers to discuss what this may mean for your situation.