India waives duty on 40 petrochemical items to ease supply disruptions

In a move aimed at cushioning domestic industries from global supply shocks, the Government of India on Thursday announced a full exemption of customs duty on 40 critical petrochemical products until June 30, 2026, amid ongoing disruptions triggered by the US-Israel-led war involving Iran in West Asia.According to the finance ministry the move is temporary and aimed at ensuring the continued availability of key petrochemical inputs for domestic manufacturing, while easing cost pressures on downstream sectors and maintaining supply stability across the country.
The exemption covers a wide range of petrochemical feedstock and intermediates, including Methanol, Anhydrous ammonia, Toluene, Styrene, Dichloromethane (methylene chloride), Vinyl chloride monomer, Polybutadiene, Styrene-butadiene, and Unsaturated polyester resins, among others.These materials serve as essential inputs for industries such as plastics, packaging, textiles, pharmaceuticals, chemicals, and automotive components. The decision is expected to benefit both manufacturers and end consumers by helping stabilize production costs and mitigating price volatility.

???? In a targeted relief, Government grants full customs duty exemption on critical petrochemical products in view of ongoing conflict in West Asia

???? Exemption will benefit sectors dependent on petrochemical feedstock and intermediates such as plastics, packaging, textiles,… pic.twitter.com/C0gp2AfDvf

— Ministry of Finance (@FinMinIndia) April 2, 2026

The government’s intervention comes at a time when disruptions in shipping routes due to the West Asia conflict have raised concerns over the import of critical commodities, including fertilisers, crude oil, and natural gas. India remains heavily dependent on imports for petroleum and fertiliser requirements, making it vulnerable to global supply chain disturbances.The latest move follows a series of steps taken by the government to cushion the economy from rising global energy prices. Last week, it reduced excise duty on petrol and diesel by Rs10 per litre to limit the impact on consumers. As part of the revision, excise duty on petrol was brought down to Rs3 per litre.