DGFT Export Relief Scheme: India Unveils Emergency Measures Amid Strait of Hormuz Disruption

India has unveiled a series of emergency measures to support exporters as geopolitical tensions in West Asia disrupt key shipping routes, driving up freight rates and insurance costs. The move comes as part of the government’s broader DGFT export relief scheme to stabilize outbound trade.

The response, led by the Directorate General of Foreign Trade (DGFT), follows growing concerns over supply chain instability linked to disruptions in the Strait of Hormuz—one of the world’s most critical maritime corridors. The ongoing situation highlights the impact of Strait of Hormuz disruption on Indian exports, particularly in terms of rising logistics costs and delayed shipments.

A high-level inter-ministerial group, set up on March 3, 2026, is meeting daily to monitor the situation and coordinate action across ministries, including commerce, shipping, finance, and external affairs. Authorities have also launched an exporter helpline and a dedicated mechanism to address perishable cargo issues in real time. To ease logistical bottlenecks, the Central Board of Indirect Taxes and Customs (CBIC) has allowed exporters to retrieve stranded cargo through “Back to Town” procedures in cases where export documentation has not been completed. Shipping cost volatility has also drawn regulatory attention. The Directorate General of Shipping has issued an advisory urging carriers to maintain pricing transparency and avoid excessive surcharges.

Meanwhile, the Jawaharlal Nehru Port Authority has waived storage and related charges for containers stranded due to Middle East disruptions. In a move to reduce compliance pressure, DGFT has extended export obligation deadlines under key schemes until August 31, 2026, reinforcing the objectives of the DGFT export relief scheme.

The government has also introduced a financial support mechanism through the Resilience & Logistics Intervention for Export Facilitation (RELIEF) Scheme, implemented by the Export Credit Guarantee Corporation of India. The scheme offers expanded risk coverage and partial reimbursement of elevated logistics and insurance costs, particularly benefiting MSME exporters and addressing the impact of Strait of Hormuz disruption on Indian exports.

Officials said the measures aim to maintain export continuity and cushion businesses against external shocks as geopolitical risks persist.