West Asian war has created considerable uncertainty, says Ralhan
Exporters have welcomed the Government’s timely and proactive announcement of the RELIEF (Resilience & Logistics Intervention for Export Facilitation) initiative under the Export Promotion Mission, aimed at supporting exporters impacted by the ongoing disruptions in West Asia maritime trade routes.
The recent developments around the Strait of Hormuz and the wider Gulf region have led to significant challenges including vessel diversions, increased transit time, congestion at transshipment hubs and steep increases in freight and insurance costs, said S C Ralhan, President, Federation of Indian Export Organisations (FIEO) as he welcomed the Government support.
“These disruptions have created considerable uncertainty for Indian exporters, particularly those with exposure to the region,”
said Ralhan. “The Government’s swift response reflects its strong commitment to safeguarding India’s export inwelterests and ensuring continuity of trade flows in the face of global uncertainties.”
FIEO particularly appreciated the comprehensive design of the RELIEF package, which addresses the needs of exporters across different stages of the export cycle:
Enhanced Risk Protection: Exporters who had already obtained cover from the Export Credit Guarantee Corporation of India during the disruption period will benefit from up to 100% risk coverage, providing complete financial security without additional cost.
Support for Upcoming Shipments: For consignments planned over the next three months, exporters are encouraged to obtain ECGC cover with Government-supported risk coverage of up to 95%, which will significantly enhance confidence in undertaking exports despite prevailing uncertainties.
Relief for MSME Exporters: Recognising the challenges faced by smaller exporters, the provision of up to 50% reimbursement of extraordinary freight and insurance costs for eligible MSMEs who were not covered under ECGC is a highly commendable step, ensuring inclusive support.
The provision for a dedicated financial outlay and a real-time monitoring mechanism is expected to ensure transparency and timely disbursement of benefits.
President FIEO stated that the RELIEF initiative will go a long way in somewhat mitigating the immediate impact of logistics disruptions. FIEO reaffirmed its commitment to work closely with the Government and stakeholders to ensure effective dissemination and smooth implementation of the scheme, and to continue providing feedback from the exporting community. Fiinews
