India Grants Full Customs Duty Exemption on 40 Critical Petrochemical Products Amid West Asia Conflict
NEW DELHI | April 02, 2026 — In a major move to provide targeted relief to the domestic manufacturing sector, the Government of India has announced a full customs duty exemption on 40 critical petrochemical products and intermediates.
This decision, prompted by the ongoing conflict in West Asia and subsequent disruptions in global supply chains, aims to ensure the continued availability of essential inputs and reduce cost pressures on downstream industries.
The exemption is effective immediately and will remain in force until June 30, 2026, serving as a temporary measure to safeguard supply stability and protect consumers from price hikes in final products.
A wide array of sectors is set to benefit from this policy, including plastics, packaging, textiles, pharmaceuticals, chemicals, and automotive components, all of which rely heavily on stable feedstock prices to maintain production momentum.
The extensive list of exempted goods covers a broad spectrum of industrial chemicals and polymers essential for modern manufacturing.
Key chemicals included in the relief package are Anhydrous ammonia, Toluene, Styrene, Dichloromethane (methylene chloride), Vinyl chloride monomer, Methanol (methyl alcohol), Isopropyl alcohol, and Monoethylene Glycol (MEG). The government has also removed duties on Phenol, Acetic acid, Vinyl acetate monomer, Purified Terephthalic Acid (PTA), Ethylenediamine, Di Ethanolamine, Mono Ethanolamine, Toluene di-isocyanate, Ammonium nitrate, and Linear alkylbenzenes.
These substances are foundational to the production of everything from life-saving medicines to synthetic fibers used in the garment industry.
Furthermore, the exemption extends to a significant range of polymers and resins that are backbone materials for the Indian industrial landscape.
This includes Polymers of ethylene (including Ethylene-vinyl acetate), Polypropylene, Polystyrene, Styrene-acrylonitrile (SAN), Acrylonitrile-butadiene-styrene (ABS), and Polyvinyl Chloride (PVC).
Other high-performance materials covered under the new notification include Polytetrafluoroethylene, Polyvinyl acetate, Polyvinyl alcohol, Poly (methyl methacrylate), Polyoxymethylene (POM-acetal), Polyols, Polyether Ether Ketone (PEEK), and various Epoxy, Polycarbonate, and Alkyd resins.
The list is rounded out by Poly ethylene terephthalate (PET) Chips, Unsaturated polyester resins, Poly butylene terephthalate, Polyurethanes, Polyphenylene sulphide (PPS), and various formaldehyde resins including Urea, Melamine, and Phenol formaldehyde, as well as Poly butadiene and Styrene butadiene.
By waiving duties on these diverse materials, the Ministry of Finance aims to maintain the competitiveness of Indian exports and stabilize the domestic market during this period of geopolitical volatility.