India extends duty-free import of critical petrochemical products till July 15

Published 30 June 2026 · india

The India government on Tuesday (30 June) said that nil customs duty on import of critical petrochemical products has been extended by 15 days till

The India government on Tuesday (30 June) said that nil customs duty on import of critical petrochemical products has been extended by 15 days till July 15 to ensure continuity of supply stability amid the West Asia crisis. The move is intended to maintain an uninterrupted supply of essential petrochemical feedstock for manufacturers while cushioning businesses from rising import costs linked to ongoing regional instability. Finance Ministry extends temporary customs duty relief In a notification issued on Tuesday, the Finance Ministry prolonged the customs duty exemption on nearly 40 critical petrochemical products until 15 July. The waiver was first introduced on 2 April as what the government described as a "temporary and targeted relief" in response to supply chain disruptions triggered by the conflict in West Asia.

The measure was originally scheduled to remain in force until the end of June. Which industries will benefit? The continued exemption is expected to support a broad range of industries that rely heavily on imported petrochemical feedstock and intermediates. These include manufacturers in the plastics, packaging, textiles, pharmaceuticals, chemicals and automotive components sectors, all of which depend on a steady supply of raw materials for production. By reducing import costs on key inputs, the government aims to ease financial pressure on downstream industries while helping stabilise the availability of finished products for consumers. Petrochemical products covered under the exemption The customs duty waiver applies to several essential petrochemical products, including Methanol, Anhydrous ammonia, Toluene, Styrene, Dichloromethane (methylene chloride), Vinyl chloride monomer, Polybutadiene, Styrene butadiene and Unsaturated polyester resins.

These materials are widely used in industrial manufacturing and form the backbone of numerous production processes across India's manufacturing sector. Why the government extended the duty waiver When announcing the original exemption in April, the Finance Ministry said the decision was taken "in light of the ongoing conflict in West Asia and the consequent disruptions in global supply chains". The ministry had said the measure was aimed at ensuring the uninterrupted availability of critical petrochemical inputs for domestic industries, reducing cost pressures on downstream sectors and safeguarding supply stability across the country. Also Read | Facing supply disruption, govt directs refiners to raise LPG production It had also noted that the relief would ultimately benefit consumers by helping contain costs for a range of finished products.