New Delhi, Apr 2,2026: In a move aimed at cushioning domestic industries from global supply shocks, the Government has announced a full exemption from customs duty on a wide range of critical petrochemical products until June 30, 2026, citing disruptions caused by the ongoing conflict in West Asia.
In an official statement the government said the decision was taken as a temporary but targeted relief measure to ensure uninterrupted access to essential industrial inputs and to contain rising costs across multiple sectors.
“The exemption is intended to maintain supply stability and ease cost pressures on downstream industries that rely heavily on petrochemical feedstock,” a senior government official said.
The conflict in West Asia has strained global supply chains, particularly affecting the availability and pricing of petrochemical derivatives, many of which are crucial to manufacturing processes. India, being a major importer of several such inputs, has faced increasing volatility in recent months.
According to the government, the duty waiver covers a broad spectrum of chemicals and polymers, including anhydrous ammonia, methanol, isopropyl alcohol, monoethylene glycol, phenol, acetic acid, and vinyl acetate monomer.
It also extends to key industrial plastics and resins such as polyethylene, polypropylene, polyvinyl chloride (PVC), polystyrene, epoxy resins, and polyethylene terephthalate (PET) chips.
The exemption is expected to benefit a wide range of sectors including plastics, packaging, textiles, pharmaceuticals, automotive components, and other manufacturing industries.
By reducing the cost of raw materials, the government also aims to prevent price escalation in finished goods, thereby offering indirect relief to consumers.
Experts say the inclusion of polymers such as acrylonitrile-butadiene-styrene (ABS), polycarbonates, and polyurethanes will particularly aid the automotive and electronics sectors, while chemicals like purified terephthalic acid (PTA) and monoethylene glycol are crucial for the textile industry.
The government has indicated that the measure is temporary and will remain in place until the end of June 2026, after which the situation will be reviewed based on global market conditions.
A detailed annexure released alongside the announcement lists dozens of exempted items across various tariff headings, reflecting the wide scope of the intervention.
Officials emphasised that the move is part of a broader strategy to safeguard domestic manufacturing and ensure resilience in the face of external economic shocks.
