New Delhi, 2 Apr (APAC Media): The Government of India on Thursday has approved a full customs duty exemption on a range of critical petrochemical products until 30 June 2026 to address supply chain disruptions arising from the ongoing conflict in West Asia.
The measure aims to ensure uninterrupted production of essential industrial intermediates and mitigate cost pressures for downstream sectors.
“This temporary and targeted exemption is designed to ease input costs for domestic industries and ensure that essential petrochemical materials remain available without disruption.” Finance Ministry officials said.
The exemption covers a broad spectrum of raw materials and intermediates critical for sectors such as plastics, textiles, packaging, pharmaceuticals, chemicals, and automotive components.
“We are closely monitoring global developments and have calibrated this measure to support domestic manufacturing while balancing trade considerations,” the ministry added.
“This decision comes at a crucial time for manufacturers. It will help stabilise raw material prices and ensure uninterrupted production across multiple sectors,” said Anil Kumar, President of the Indian Petrochemicals Association.
A detailed list of exempted products has been published, including anhydrous ammonia, methanol, styrene, vinyl chloride monomer, polypropylene, polyvinyl chloride (PVC), purified terephthalic acid (PTA), and PET chips.
“Given current global volatility, this exemption is a practical step to support domestic industries while safeguarding consumer interests,” said Ritu Sharma, senior economist at the Centre for Industrial Studies.
Officials emphasised that the waiver is temporary and targeted, and future policy will depend on evolving global supply chain conditions.
Discussion about this post