[India Extends Export-Risk Support as UAE Remains Major Steel Export Market]

Published: Oct 05, 2026 14:37 (GMT+8)

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India has extended enhanced export-credit insurance support for shipments to West Asia until March 31, 2027, providing continued risk protection for exporters as the UAE remains one of the country's largest finished-steel export markets.

The Directorate General of Foreign Trade extended the eligibility timeline under Component II of the Resilience & Logistics Intervention for Export Facilitation (RELIEF), citing continued geopolitical disruptions and their impact on maritime logistics across the Gulf and adjoining regions.

The extension is relevant to India's steel trade with the region. Ministry of Steel data sourced from the Joint Plant Committee show that India exported 2.986 million tonnes of finished steel during April-August 2026, up 34.1% year on year. The UAE received 389,200 tonnes, accounting for 13.0% of India's total finished-steel exports and ranking as the country's second-largest export destination after Vietnam.

The UAE's importance was even greater earlier in the financial year. It was India's largest finished-steel export destination during April-June, receiving 249,000 tonnes, or 15.6% of total exports. Cumulative shipments to the UAE increased to 339,600 tonnes during April-July before reaching 389,200 tonnes by the end of August.

RELIEF covers consignments destined for or transshipped through specified West Asian markets including the UAE, Saudi Arabia, Kuwait, Qatar, Oman and Bahrain, among others. Under Component II, eligible exporters obtaining ECGC cover can receive risk coverage of up to 95%, while premiums are prevented from increasing beyond pre-disruption levels during the eligible period.

The government said the intervention responds to extraordinary freight escalation, higher insurance premiums and war-related export risks caused by disruptions in the Gulf and wider West Asian maritime corridor.

For the steel sector, the measure can help limit payment and insurance risks for eligible shipments to a region that has become an important outlet for Indian finished steel. However, the support should not be interpreted as applying to all Indian steel exports to West Asia. Component II specifically covers Full Container Load and Less than Container Load cargo, along with reefer containers, meaning its direct applicability is strongest for eligible containerised steel shipments rather than conventional bulk or breakbulk cargoes.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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