In response to ongoing disruptions in global supply chains amid the conflict in West Asia, the Government of India has announced a full exemption on Customs Duty for select petrochemical products until June 30, 2026.
The decision is positioned as a temporary and targeted relief measure aimed at ensuring the uninterrupted availability of key petrochemical inputs for domestic industries. The exemption is also expected to ease cost pressures on downstream sectors and maintain supply stability across the country.
A wide range of industries is likely to benefit from the move, including plastics, packaging, textiles, pharmaceuticals, chemicals, and automotive components. The government said the relief could also have a positive impact on consumers by moderating prices of finished goods.
The exempted items include essential petrochemical feedstocks and intermediates such as methanol, toluene, styrene, monoethylene glycol (MEG), phenol, acetic acid, and vinyl acetate monomer. Several polymer products including polyethylene, polypropylene, polyvinyl chloride (PVC), polystyrene, and PET chips are also covered under the exemption.
Other chemicals such as ammonia, ammonium nitrate, isopropyl alcohol, epoxy resins, polycarbonates, and polyurethanes are part of the notified list. The exemption also extends to specialised materials like polyether ether ketone (PEEK), acrylonitrile-butadiene-styrene (ABS), and styrene-acrylonitrile (SAN).
The government has released the detailed list of goods covered under the exemption through Notification No. 12/2026 – Customs.
Officials indicated that the measure is aimed at cushioning domestic industries from global volatility and ensuring continuity in manufacturing activity amid uncertain international conditions.
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