India has waived customs duty on around 40 critical petrochemical imports as a temporary measure to tackle supply disruptions triggered by the ongoing West Asia conflict, with the exemption effective from April 2 to June 30, 2026.
The duty relief covers key feedstocks and intermediates such as ammonia, methanol, toluene, styrene, acetic acid, along with major polymers like polyethylene, polypropylene, and PVC, which are essential for multiple downstream industries. The move is aimed at ensuring stable availability of raw materials, easing cost pressures, and preventing supply shocks across sectors including plastics, packaging, textiles, pharmaceuticals, chemicals, and automotive components.
The decision comes as global supply chains face disruption due to the conflict, which has also led to diversion of petrochemical resources and rising input costs across Asia, impacting industrial production. By removing import duties, the government seeks to contain inflation, support domestic manufacturing, and maintain competitiveness during a period of heightened geopolitical volatility.
However, the relief comes with a fiscal cost, with the government expected to forgo around ₹1,800 crore in revenue over the three-month period, underlining the urgency of stabilizing supplies and protecting key industries.
Source: Dairynews7x7 3 April, 2026 Read full story here
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