In response to the ongoing geopolitical tensions in West Asia and the resulting disruptions in global supply chains, the Union government has announced a full customs duty exemption on select critical petrochemical products until June 30, 2026.
The move is aimed at ensuring uninterrupted availability of key industrial inputs while cushioning domestic industries from rising cost pressures.
Targeted relief to stabilise supply chains
The exemption has been introduced as a temporary and targeted measure to maintain supply stability across sectors heavily dependent on petrochemical feedstock and intermediates.
By easing import costs, the government seeks to support domestic manufacturing, minimise supply bottlenecks, and prevent price escalation in downstream industries.
Wide-ranging impact across industries
The decision is expected to benefit a broad spectrum of industries, including plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components, and other manufacturing segments.
In addition to supporting industrial output, the move is likely to provide indirect relief to end consumers by moderating prices of finished goods.
Extensive list of eligible products
The exemption covers a wide range of essential petrochemical inputs such as anhydrous ammonia, toluene, styrene, dichloromethane (methylene chloride), vinyl chloride monomer, methanol, isopropyl alcohol, monoethylene glycol (MEG), phenol, acetic acid, vinyl acetate monomer, purified terephthalic acid (PTA), polypropylene, linear alkylbenzenes, ammonium nitrate, and polymers of ethylene.
Additionally, key polymers and resins such as polyvinyl chloride (PVC), polystyrene, unsaturated polyester resins, acrylonitrile-butadiene-styrene (ABS), polytetrafluoroethylene (PTFE), polyvinyl acetate, polyvinyl alcohol, poly(methyl methacrylate), polyoxymethylene (POM), polyols, polyether ether ketone (PEEK), epoxy resins, polycarbonates, alkyd resins, polyethylene terephthalate (PET) chips, polybutylene terephthalate, formaldehyde-based resins, polyurethanes, polyphenylene sulphide (PPS), and synthetic rubbers such as polybutadiene and styrene-butadiene have also been included.
The comprehensive coverage reflects the government’s intent to support a wide industrial base dependent on petrochemical derivatives.
Boost to industrial competitiveness
The policy intervention is expected to enhance the competitiveness of Indian manufacturers by lowering input costs and improving access to critical raw materials.
It also aligns with broader efforts to strengthen supply chain resilience and ensure continuity of production in the face of global uncertainties.