India Offers Insurance Lifeline to Exporters Amid Rising Freight Costs
India has announced a financial support scheme to assist small and medium exporters grappling with mounting cash-flow pressures caused by rising freight and insurance costs. According to the trade ministry, payment delays have intensified as war-risk premiums and emergency surcharges continue to push shipping expenses higher, particularly along routes passing through conflict-affected regions in West Asia.
The ministry noted that exporters are struggling to absorb these additional costs, as their ability to pass them on to buyers remains limited in a highly competitive global market. The sharp increase in freight rates and insurance charges has further strained working capital cycles, raising concerns over potential order cancellations and disruptions to export activity.
To address the issue, the government has launched a 4.97 billion rupees (approximately $53.26 million) scheme aimed at providing insurance support for shipments routed through affected corridors. The initiative is expected to stabilise logistics costs, safeguard export orders, and offer much-needed relief to small and medium enterprises navigating volatile global trade conditions.
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