Daijiworld Media Network – New Delhi

New Delhi, Apr 2: The Centre has waived customs duty on a wide range of petrochemical inputs in a bid to shield domestic manufacturing from supply disruptions triggered by the ongoing tensions in West Asia.

The Ministry of Finance has reduced import duty to nil on 40 petrochemical products, with the exemption coming into effect from April 2 and remaining valid till June 30, 2026.

The move is seen as a timely intervention as global supply chains linked to crude oil and petrochemicals face volatility amid geopolitical tensions. Since most petrochemicals are derived from crude, fluctuations in oil markets directly impact input costs for industries.

The duty waiver covers key feedstocks such as methanol, monoethylene glycol, phenol, acetic acid and purified terephthalic acid, along with widely used polymers including polyethylene, polypropylene, polystyrene and PVC. Advanced materials like epoxy resins, polycarbonates, PET chips and polyurethanes have also been included.

Officials said the exemption is aimed at reducing the landed cost of imports at a time when global prices remain elevated, thereby easing cost pressures on domestic manufacturers.

The decision is expected to benefit multiple sectors including plastics, packaging, textiles, pharmaceuticals, chemicals and automobiles, all of which rely heavily on petrochemical inputs.

Experts note that rising petrochemical prices can have a cascading effect on inflation, making the government’s move significant from a broader economic perspective.

The time-bound nature of the relief indicates that policymakers view the disruption as a short-term shock. However, the wide coverage of the exemption suggests concerns over sustained volatility, with the possibility of further measures if the West Asia situation persists.