The Commerce and Industry Ministry on Monday extended a relief scheme for exporters dealing with the West Asia region till March 2027, citing continued geopolitical disruptions in West Asia and their impact on maritime logistics across the Gulf and adjoining regions. The scheme came into effect in March this year, and eligible destinations under the scheme include 10 countries, including UAE, Saudi Arabia, Kuwait, Qatar, Oman and Iran among others.Under the relief scheme, which is part of the Export Promotion Mission (EPM) announced during the Union Budget this year, Export Credit Guarantee Corporation of India (ECGC) gives enhanced compensation up to 100% of loss for war-related and associated political risks, subject to verification and premiums are frozen at pre-disruption levels for the entire eligible period.“The Department of Commerce has extended the timelines under Component II of Resilience & Logistics Intervention for Export Facilitation (RELIEF), a time-bound intervention under the EPM, until March 31, 2027. The extension was notified vide Notification No. 37/2026-27 dated September 30, 2026, in view of continued geopolitical disruptions in West Asia and their impact on maritime logistics across the Gulf and adjoining regions,” the ministry said.“Component II of the initiative aims to encourage exporters to obtain ECGC cover for upcoming shipments to specified regions by providing 95% risk coverage. The benefit is available for Standalone Policies and Whole Turnover Policies obtained on or after March 16, 2026. Under this component, the premium payable by eligible exporters is protected against increases beyond pre-disruption levels during the eligible period. The covered cargo categories include Full Container Load (FCL), Less than Container Load (LCL) and refrigerated (reefer) containers, excluding energy shipments,” the government said.Low-margin exports remain under stressThe extension of the relief scheme comes as official data showed that low-margin exports have been struggling due to high freight rates and port congestion. Despite significant depreciation in the domestic currency compared to last year, exports of ready-made garments declined 6% during the April to September period this year compared to last year.Data showed that exports of multiple edible items such as fruits and vegetables, tea, spices and oil meals slipped 9.6%, 13.6%, 5.7%, and 26% respectively. Exports of rice, one of the largest export items to the West Asia region, only managed to grow by 2.5%, data showed. Meanwhile, export growth has been driven by engineering and electronic exports.Aman Gupta, Managing Director, Shiv Shakti Inter Globe Exports Pvt Ltd (SSIEL) said despite the broader resilience of the Indian economy and export sector, low-margin agricultural commodities such as Basmati rice face distinct challenges compared with higher-value manufactured goods.Story continues below this ad“The near-term outlook remains challenging, as elevated freight costs, uncertain transit schedules and delayed payments continue to put pressure on exporters. These factors are affecting both operating costs and the ability to plan shipments with confidence. Until shipping routes stabilise and payment flows improve, the industry is likely to remain under pressure, particularly smaller exporters that have limited financial flexibility to absorb prolonged disruptions,” Gupta said.Exports to West Asia struggleThe continued tension in the West Asia region has battered India’s exports to the region during the ongoing financial year even as exporters are increasingly looking at alternate markets. India’s exports to its second largest export market, UAE, has been affected the most. Shipments declined nearly 11% to $16.70 billion during the April to September period this financial year against the comparable period during the last financial year.Exports to Saudi Arabia slipped over 5.3% to $4.70 billion during the April to September period compared to FY26. Similarly, shipments to Iraq during the same duration declined 49.6% to $836 million, and exports to Qatar, Kuwait and Iran slipped 34%, 37.5% and 37.5% respectively between April and September during the current financial year against the same period in FY26.However, goods exports to Oman after the India-Oman FTA, which came into effect in June, jumped 47.4% to $3.28 billion compared to $2.22 billion during the April to September period in the same period in FY26. Imports from Oman have also skyrocketed by 210% to $10.03 billion against $3.2 billion between April and September, data released by the Commerce and Industry Ministry showed.West Asia turmoil hits global tradeStory continues below this adThe World Trade Organization (WTO) outlook report released earlier this month predicted the strongest 2026 trade volume growth in Asia at 9.9%, followed by North America 5.7%, Africa 5.6% and South America 3.4%. However, merchandise exports are expected to be flat in Europe -0.1% and to contract more sharply in the Commonwealth of Independent States (CIS) -3.9% and the Middle East -17.2%World GDP is expected to grow by 2.6% in 2026, with the largest gains in Asia 4.3% and Africa 4.1%, followed by South America 2.5%, North America 2.0%, the CIS region 1.7% and Europe 1.3%. At the same time, the Middle East is expected to see a sharp drop in output of 4.0% due to the conflict in the region, WTO said.“The conflict in the Middle East has led to a significant reorganisation of regional maritime transport. Container throughput at Jebel Ali, the largest port of the United Arab Emirates, fell by around 60% year-on-year in the first half of 2026. The drop was particularly sharp in the second quarter, at 90%. At the same time, throughput rose by around 40% at Sohar and 15% at Salalah in Oman, and by almost 79% at Jeddah’s South Container Terminal on the Kingdom of Saudi Arabia’s Red Sea coast. The latter recorded growth in imports, exports and trans-shipment,” the WTO report said.Container throughput is the total number of shipping containers handled by a port, terminal, or country.