The Indian government announced full customs duty exemption on 40 critical petrochemical products to safeguard the domestic industry from disruptions caused by the ongoing Middle East conflict.
The exemption remains valid until June 30, 2026.
Officials described the move as temporary and targeted relief to ensure the uninterrupted availability of petrochemical inputs. The exemption covers feedstock and intermediates vital for plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components, and other manufacturing sectors.
The list includes anhydrous ammonia, toluene, styrene, methanol, vinyl chloride monomer, polypropylene, PVC, epoxy resins, polycarbonates, and purified terephthalic acid, among others. These products form the backbone of multiple industries and directly impact consumer goods.
Shipping disruptions and rising crude oil prices triggered the decision. Global crude surged nearly 50% since the US-Israel strikes against Iran on February 28, which drew retaliation from Tehran. India, a major importer of fertilisers and petroleum, faced mounting concerns over supply stability.
Last week, the government reduced excise duty on petrol and diesel by Rs 10 per litre to shield consumers from rising fuel costs. The customs duty exemption complements that measure by easing cost pressures on downstream industries.
