Rough Kumar and Rituraj Baruah
New Delhi: Amid the escalating US-Israel-Iran war and its ripple effect on maritime logistics in the Persian Gulf region, India on Thursday announced a major relief package – RELIEF (Resilience and Logistics Intervention for Export Facilitation) as part of its export promotion mission. The package will be implemented with a financial cost of ₹497 crore under the mission, the government said.
The Export Credit Guarantee Corporation of India (ECGC) will maintain a dashboard-based monitoring system to enable real-time tracking of claims and fund utilization.
The intervention is aimed at supporting Indian exporters affected by the extraordinary escalation of freight traffic, increased insurance premiums and war-related export risks arising from the US-Israeli war with Iran through the wider West Asian Maritime Corridor. Conflict in West Asia has disrupted supply chains, driving up prices of key inputs needed for production.
The latest escalation in attacks in the region sent energy prices soaring on global markets, with benchmarks rising more than 5% on Thursday and India’s crude oil basket hitting record highs. Amidst this energy crisis, India has also ordered oil and gas companies to provide ball-by-ball operational metrics to aid in detailed monitoring and action.
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The government had earlier launched a coordinated customs and logistics exercise to help exporters deal with stranded or returned cargo following the closure of the key Strait of Hormuz, which carries about 20% of energy-laden global vessels.
According to an official statement, the RELIEF intervention consists of three complementary components that include shipments bound for countries in the region such as the United Arab Emirates (UAE), Saudi Arabia, Kuwait, Israel, Qatar, Oman, Bahrain, Iraq, Iran and Yemen, for either delivery or transshipment.
“Firstly, exporters who have already obtained ECGC credit insurance cover for eligible consignments will enjoy up to 100% risk cover over and above the existing ECGC cover during the eligible period (February 14, 2026 to March 15, 2026), thereby ensuring enhanced protection without additional financial burden,” the government statement said.
It also noted that exporters planning upcoming shipments during the next three months – March 16 to June 15 – will be encouraged to obtain ECGC coverage with government support to cover up to 95% of risks beyond the existing ECGC coverage, which will help maintain exporters’ confidence and facilitate continued shipment flows despite logistical uncertainties.
Timely support
“The RELIEF initiative provides timely support to exporters facing challenges due to heightened geopolitical risks in West Asia. The government’s response to disruptions around the Strait of Hormuz causing an increase in shipping costs and insurance premiums will ensure continuity of trade flows. The inclusion of past and future shipments, along with targeted support for MSMEs, reflects a much-needed policy nuance, RajHD President said in June. Trade and Industry.
As some Micro, Small and Medium Enterprises (MSME) exporters may not have availed credit insurance during the period from February 14 to March 15, but are facing extra burden for transportation and insurance premiums, RELIEF includes a partial reimbursement mechanism of up to 50% for eligible MSME exporters who are not insured by ECGC.
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“This support will be extended upon fulfillment of the prescribed conditions, verification of documents and notified ceilings (up to ₹50 lakh per exporter) and to provide timely relief against escalation of conflict-related logistics costs,” the government said.
Through RELIEF, the government aims to mitigate the immediate impact of logistics disruptions, protect exporters’ confidence, prevent order cancellations and ensure employment in export-related industries. The intervention will strengthen India’s commitment to maintain resilience and competitiveness in global trade in times of uncertainty.
Marine update
The development comes at a time when 22 Indian-flagged vessels remain stranded on the western side of the Strait of Hormuz and the country is under pressure from power shortages.
Addressing the media on developments in West Asia, Rajesh Kumar Sinha, Special Secretary, Union Ministry of Ports, Shipping and Waterways, said that 22 Indian-flagged vessels with 611 Indian sailors were stranded in the Western Persian Gulf region and that various top agencies were coordinating to closely monitor the situation.
He added that India’s maritime sector continues to function smoothly, with no congestion reported at ports as confirmed by state maritime authorities, including Gujarat, Maharashtra, Goa, Kerala, Andhra Pradesh and Puducherry.
“Ports are closely monitoring vessel movements and cargo operations and have created additional storage capacity, including arrangements at Jawaharlal Nehru Port Authority (JNPA), VOChidambaranar Port (VOCPA), Visakhapatnam Port and Mundra. Deendayal Port Authority has created additional storage capacity, including allocation of around 54 acres of land, along with measures to waive 5% levy and 0% operating support charges for port users,” he said Sinha.
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The crude oil ship Jag Laadki arrived at Mundra port at 6:00 a.m. on March 18 and is currently discharging its cargo, which is likely to be completed on March 19, while another vessel with Russian crude booked by Mangalore Refinery and Petrochemicals Ltd is expected to arrive in India on March 21, he said.
Oil prices rose over 6% on Thursday with Brent hitting a high of $118 a barrel after fresh attacks on key energy infrastructure in West Asia raised fears of a wider supply shock.
The conflict’s shift toward targeting energy infrastructure has heightened fears of a long-term supply shock, driving oil prices higher and exposing import-dependent economies like India to new risks.
Asked about the impact of the escalation on India’s efforts to ensure safe passage for Indian-flagged vessels, Ministry of External Affairs spokesperson Randhir Jaiswal said, “We continue to be in touch with all the countries concerned to ensure that energy security needs are met and our energy supplies have unrestricted transit.”
Increase in energy prices
At the time of writing, the April Brent crude contract was trading at $113.03 a barrel on the Intercontinental Exchange, up 5.3% from its previous close. Global oil prices have fluctuated since the start of the war on February 28.
On March 9, prices broke above $100 a barrel for the first time in four years, reaching nearly $119 before easing back to around $100. The region has now seen new attacks on Iran’s South Pars gas field and retaliatory attacks on energy assets in Qatar, Kuwait and Saudi Arabia.
The basket price of Indian crude oil also hit an all-time high of $146.39 per barrel. The basket contains sour (Oman and Dubai average) and sweet (Brent Dated) crude oil processed in Indian refineries in a ratio of 78.71:21.29.
On the rise of India’s basket and the impact of rising prices on oil marketing companies, Sujata Sharma, joint secretary, marketing and petroleum refining in the Ministry of Petroleum and Natural Gas, said the basket math is a “complicated formula” and while “…the pressure (on prices) is definitely there, there is no increase in (petrol and diesel) prices so far.”
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However, the oil marketing companies (OMCs) earlier this month increased the price of domestic liquefied petroleum gas (LPG) by ₹50 per cylinder and commercial LPG approx ₹115 per cylinder.
A report by Kotak Institutional Equities on Thursday said that without retail pricing freedom, OMCs will have to absorb higher oil, transport and insurance costs. “Negative public sentiment amid LPG shortages makes big hikes in petrol/diesel prices very difficult. OMCs have benefited from increased marketing margins over the past few years. However, weak profits are now set to erode the built-up buffer. Post-crisis, fresh capital expenditure on LPG storage is likely,” it said.
Data tracking
Amid volatility in global markets, the center mandated all oil and gas companies to provide detailed operational information, including data on production, imports, exports, inventory levels and consumption.
The Petroleum Ministry’s Petroleum and Natural Gas (Provision of Information) Regulations, 2026 require refiners, LNG importers, pipeline operators, city gas distributors and petrochemical firms in the public and private sectors to report detailed data regularly — daily, weekly, monthly — to the ministry’s Petroleum Planning and Analysis Cell (PPAC), according to a notification by the petroleum ministry.
Addressing the media, Sharma said the move is aimed at providing PPAC with a legal enforcement mechanism to collect such data; to give her “legal power”, she said.
“So now everyone has to provide information. PPAC is getting it (even now). But now, with legal force, it will be more doable,” Sharma added.
