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 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, (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.
It had also noted that the relief would ultimately benefit consumers by helping contain costs for a range of finished products.
West Asia conflict continues to affect global trade
The extension comes as concerns persist over shipping disruptions linked to the conflict in , a region that plays a central role in global energy and petrochemical supplies.
India remains heavily dependent on imports of crude oil, fertilisers and several petrochemical products. Any disruption to maritime trade routes or regional exports has the potential to increase costs for manufacturers and place additional pressure on domestic supply chains.
By extending the customs duty exemption, the government is seeking to provide short-term support to industries navigating continued uncertainty in global commodity markets.
