New Delhi, April 2: The Indian government has announced a significant decision to waive custom duties on essential petrochemical products until June 30, 2026. This move comes amid ongoing tensions in West Asia and disruptions in the global supply chain, as revealed by the Finance Ministry on Thursday.
The ministry stated that this initiative is a temporary and targeted relief measure aimed at ensuring the availability of critical petrochemical raw materials in the country. It seeks to alleviate cost pressures on downstream industries and stabilize supply chains.
According to the government, various sectors reliant on petrochemical products, such as plastics, packaging, textiles, pharmaceuticals, chemicals, auto components, and other manufacturing industries, are expected to benefit from this exemption.
The government also anticipates that consumers of final products will experience relief as a result of this decision.
Key petrochemical products included in this exemption are anhydrous ammonia, toluene, styrene, dichloromethane (methylene chloride), vinyl chloride monomer, methanol (methyl alcohol), isopropyl alcohol, monoethylene glycol (MEG), and phenol, among others.
Additionally, products like acetic acid, vinyl acetate monomer, purified terephthalic acid (PTA), ammonium nitrate, ethylene polymers (including ethylene-vinyl acetate), epoxy resins, formaldehyde, urea formaldehyde, melamine formaldehyde, and phenol formaldehyde are also part of this list.
In light of the ongoing conflict in Iran and its impact on maritime trade, the central government had previously decided to restore rates and value caps for all eligible export products under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme from March 23.
This step aims to provide timely assistance to Indian exporters facing rising freight costs and trade risks associated with the war, particularly due to disruptions in maritime routes in the Gulf and West Asia.
Furthermore, the government has assured that India has sufficient stocks of crude oil, petrol, diesel, ATF, LPG, and LNG to manage short-term challenges effectively. The country continues to maintain energy supplies from various global suppliers.
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