India's Directorate General of Foreign Trade (DGFT) has extended the enhanced export insurance cover for shipments to West Asia until September 30, 2026, according to an official notification. The extension applies to exporters taking credit risk insurance from the Export Credit Guarantee Corporation (ECGC) under the Resilience and Logistics Intervention for Export Facilitation (RELIEF) scheme, part of the Export Promotion Mission (EPM).
Originally announced on March 19, 2026, the enhanced risk cover was available for shipments sent between March 16 and June 15, 2026. The DGFT has now extended the eligibility timelines under Component II of the EPM RELIEF intervention to support Indian exporters facing ongoing logistics challenges due to the West Asia crisis and the Iran war.
Extension Details for Exporters
The enhanced cover provides higher risk coverage or lower premium rates (the exact parameters were not specified in the source) for exporters insuring their receivables from West Asia buyers through ECGC. This is part of the government’s strategy to mitigate trade disruptions in the region.
| Feature | Original Window | Extended Window |
|---|---|---|
| Shipment period | March 16, 2026 – June 15, 2026 | Extended to September 30, 2026 |
| Applicable scheme | EPM RELIEF – Component II | Same |
| Insurance provider | Export Credit Guarantee Corporation (ECGC) | Same |
| Purpose | Support exports affected by West Asia crisis | Continued support due to ongoing crisis |
Context of the West Asia Crisis
The enhanced cover was introduced in response to the Iran war and the broader West Asia crisis, which have created logistics challenges for Indian exporters. The DGFT stated: "The eligibility timelines under Component II of the EPM RELIEF intervention are extended up to September 30, 2026 to support Indian exporters and mitigate logistics challenges arising out of the continuing West Asia Crisis."
Implications for Trade Finance
For trade finance professionals and exporters, the extension provides continued access to credit risk insurance at enhanced terms, reducing the risk of non-payment from buyers in conflict-affected West Asian markets. CFOs and treasury teams can factor this extended coverage into their working capital planning and export receivables management. The move also signals the government’s commitment to sustaining export flows despite geopolitical headwinds.
Exporters dealing with letters of credit or open account terms to West Asia can now insure their shipments under the RELIEF scheme for an additional three months. ECCA officers and risk managers should ensure their insurance policies are updated to reflect the extended timeline.
Given the limited details on the exact enhancement of the cover, exporters are advised to consult ECGC or the DGFT for specific policy terms. The extension runs until September 30, 2026, providing a window of certainty for Q2 FY27 shipments.
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