Move Aims to Stabilise Supply, Reduce Costs for Industries and Consumers
New Delhi, April 2: In a major relief measure, the Government of India has announced full customs duty exemption on critical petrochemical products in response to disruptions caused by the ongoing conflict in West Asia.
The Ministry of Finance stated that the exemption has been introduced due to significant disruptions in global supply chains, impacting the availability of essential petrochemical inputs.
The relief measure will remain in force till June 30, 2026.
The exemption is expected to benefit a wide range of industries dependent on petrochemical feedstock, including: Plastics and packaging, Textiles, Pharmaceuticals, Chemicals, Automotive components and other manufacturing sectors.
Officials said the move will help reduce cost pressures and ensure continued production across these sectors.
By easing input costs for industries, the government aims to stabilise prices of finished goods, Ensure uninterrupted supply of essential products and provide indirect relief to consumers facing rising costs.
The exemption covers several key petrochemical items such as Methanol, ethanolamines, and acetic acid, Polymers including polyethylene, polypropylene, PVC, Chemical intermediates like styrene, phenol, and toluene. A detailed list of products has been included in the official notification.
The government described the move as a temporary and targeted intervention aimed at Ensuring supply stability, Supporting domestic industries and Mitigating the impact of global uncertainties
The decision is part of broader efforts to shield the Indian economy from international price volatility and supply shocks.
