Temporary customs duty relief aims to shield industries from global volatility and rising costs
April 2, 2026: In a bid to protect the domestic economy from global disruptions, the Ministry of Finance India has announced a temporary customs duty exemption on key petrochemical products. The measure, effective until June 30, is designed to stabilize supply chains and ease cost pressures on industries and consumers impacted by volatility linked to the West Asia conflict.
The exemption covers a wide range of essential inputs used across sectors such as plastics, textiles, pharmaceuticals, automotive manufacturing, and chemicals. According to the ministry, the move is a targeted effort to ensure the continued availability of critical petrochemical feedstock, reduce input costs for downstream industries, and maintain supply stability. Disruptions in global shipping routes and rising crude oil prices have added pressure on these sectors, making timely intervention necessary.
Key materials included in the exemption list are methanol, anhydrous ammonia, toluene, styrene, dichloromethane, vinyl chloride monomer, polybutadiene, styrene butadiene, and unsaturated polyester resins—vital components for products ranging from fertilizers to synthetic rubber. The decision comes as India responds to rising global oil prices amid tensions involving the United States, Israel, and Iran. Alongside this, the government has also reduced excise duty on petrol and diesel and imposed export duties on diesel and aviation turbine fuel to ensure adequate domestic supply.