According to the Finance Ministry, the exemption is expected to bring relief to a wide range of sectors, including plastics, packaging, textiles, pharmaceuticals, chemicals, and automotive manufacturing.
Representational Image (IANS)
In view of the ongoing geopolitical tensions in West Asia and the resulting strain on global supply chains, the Centre has announced a full exemption on customs duty for select petrochemical products until June 30, 2026.
The move is aimed at ensuring the uninterrupted availability of critical raw materials for domestic industries that rely heavily on petrochemical inputs. Officials said the decision is a targeted, short-term measure to counter volatility in international markets, reduce cost pressures on downstream sectors, and safeguard supply stability in the country.
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Industries to benefit across sectors
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According to the Finance Ministry, the exemption is expected to bring relief to a wide range of sectors, including plastics, packaging, textiles, pharmaceuticals, chemicals, and automotive manufacturing. These industries depend on petrochemical feedstock for production, and rising input costs have begun to impact margins.
The government also expects the measure to help contain price rise in finished goods, indirectly benefiting consumers.
List of exempted petrochemical products
The exemption covers several widely used industrial chemicals and intermediates, including:
The list also includes:
Short-term measure with wider impact
The government noted that disruptions in global logistics and supply chains, triggered by the West Asia conflict, have affected the steady flow of essential petrochemical products. By removing import duties temporarily, the government aims to stabilise supplies and prevent shortages in the domestic market.
The government has positioned the duty waiver as a calibrated intervention to shield domestic manufacturing from global shocks. While temporary in nature, the move is expected to provide breathing space to industries grappling with rising input costs and uncertain supply conditions.
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