Duty Exemption on 40 Petrochemicals Aims at Easing Cost Pressures Amid Supply Disruptions
The exemption covers a wide spectrum of petrochemical feedstock and intermediates used across industries such as plastics, packaging, textiles, pharmaceuticals, chemicals, and automotive manufacturing.
Relief aimed at stabilising supply chains, reducing input costs amid West Asia disruptions
New Delhi: The Union government has announced full customs duty exemption on a range of critical petrochemical products till June 30, 2026, as a temporary measure to address supply disruptions arising from the ongoing conflict in West Asia.
The decision is aimed at ensuring uninterrupted availability of essential petrochemical inputs for domestic industries, while also easing cost pressures on downstream sectors and consumers, an official statement said on Thursday.
The exemption covers a wide spectrum of petrochemical feedstock and intermediates used across industries such as plastics, packaging, textiles, pharmaceuticals, chemicals, and automotive manufacturing. These sectors are expected to benefit through improved supply stability and reduced production costs.
According to the release, the measure has been designed as a targeted intervention to safeguard domestic manufacturing and maintain continuity in industrial operations during a period of global supply chain volatility.
The annexure to the notification lists 40 petrochemical products eligible for the exemption. These include key inputs such as anhydrous ammonia, toluene, styrene, methanol, monoethylene glycol (MEG), phenol, acetic acid, purified terephthalic acid (PTA), and vinyl acetate monomer. The list also covers a wide range of polymers and resins, including polyethylene, polypropylene, PVC, ABS, epoxy resins, polycarbonates, PET chips, and polyurethanes, among others, as detailed across pages 1 to 4 of the notification.
The move comes amid heightened geopolitical tensions impacting global petrochemical supply chains, with India taking proactive steps to mitigate domestic shortages and inflationary pressures.
The government has also streamlined regulatory processes to ensure faster clearances and smoother import flows during the exemption period.
