Govt grants full customs duty exemption on critical petrochemical products
New Delhi, Apr 2, 2026
The exemption on a wide range of critical petrochemical products till June 30, 2026, is a temporary and targeted relief to shield domestic manufacturers from disruptions caused by the Iran war
The government on Thursday announced a full customs duty exemption on a wide range of critical petrochemical products till June 30, 2026, as a temporary measure to support domestic industry amid supply disruptions linked to the West Asia conflict.
Why has the government waived customs duty?
“This measure has been taken as a temporary and targeted relief in order to ensure continued availability of critical petrochemical inputs for domestic industry, reduce cost pressures on downstream sectors, and safeguard supply stability in the country,” the Finance Ministry said.
The move comes as geopolitical tensions in West Asia disrupt global supply chains and raise input costs for Indian manufacturers.
Which sectors will benefit from the move?
Industries such as plastics, packaging, textiles, pharmaceuticals, chemicals and automotive components are expected to benefit from lower input costs.
The government said the relief is likely to cascade through the value chain and eventually benefit consumers of finished goods.
What products are covered under the exemption?
The exemption includes a broad range of petrochemical feedstocks, intermediates, polymers and resins.
Key basic chemicals covered include anhydrous ammonia, toluene, styrene, methanol, isopropyl alcohol, acetic acid, phenol and monoethylene glycol (MEG).
It also covers monomers and intermediates such as vinyl chloride monomer, vinyl acetate monomer, purified terephthalic acid (PTA), ethylenediamine, toluene di-isocyanate and linear alkylbenzenes.
Which polymers and resins are included?
The list extends to widely used polymers and specialty materials, including polyethylene, polypropylene, polystyrene, polyvinyl chloride (PVC), polyethylene terephthalate (PET) chips, polycarbonates and epoxy resins.
Advanced materials such as acrylonitrile-butadiene-styrene (ABS), polyether ether ketone (PEEK) and polyphenylene sulphide (PPS) are also covered.
The government said the measure is aimed at ensuring uninterrupted availability of critical inputs and maintaining stability in domestic manufacturing during a period of global uncertainty.
[The Business Standard]
