India Eliminates Custom Duty on Petrochemicals Until June 2026; Industries Welcome Move
New Delhi: Amid ongoing tensions in West Asia and disruptions in the global supply chain, the Indian government has taken a major step to support domestic industries by completely eliminating customs duties on several essential petrochemical products. This exemption will remain in effect until June 30, 2026, ensuring uninterrupted supply of raw materials within the country.
The government stated that the decision was prompted by international shortages and rising prices of raw materials, aiming to ease pressure on Indian industries. The move is expected to reduce production costs and provide stability in operations for businesses.
Key sectors likely to benefit include plastics, packaging, textiles, pharmaceuticals, chemicals, and auto parts. Experts suggest that lower raw material costs may also translate into moderate relief in the prices of finished products, benefiting end consumers.
Products covered under this duty exemption include anhydrous ammonia, methanol, toluene, styrene, vinyl chloride monomer, monoethylene glycol (MEG), phenol, acetic acid, and PTA. Additionally, polymer products such as polyethylene, polypropylene, polystyrene, PVC, PET chips, and ABS are also included.
The government clarified that this decision is intended as temporary relief and that global developments will continue to be closely monitored. Further measures may be implemented if necessary to maintain production capacity and strengthen the economy.
