The Union government on Thursday (April 2, 2026) announced a complete Customs Duty waiver on nearly 40 petrochemical products until June 30, 2026. The move comes in response to supply disruptions and rising global prices triggered by the ongoing conflict in West Asia.
According to an official notification issued on April 1, the list of exempted items includes crucial industrial inputs such as polypropylene, polystyrene, polyols, polybutadiene, styrene-butadiene rubber, and anhydrous ammonia. These materials serve as essential feedstock for a wide range of manufacturing sectors.
The government clarified that the exemption is a short-term and targeted intervention designed to maintain uninterrupted supply of critical petrochemical inputs. It aims to ease cost pressures on downstream industries and ensure overall supply chain stability during a period of heightened geopolitical uncertainty.
Industry stakeholders have welcomed the decision, noting that several sectors — including plastics, packaging, textiles, pharmaceuticals, chemicals, and automotive manufacturing — are heavily reliant on these inputs. The exemption is expected to help curb production costs and prevent further disruptions.
Highlighting the impact of the global crisis, RK Vij, President of the Textile Association (India), pointed out that key raw materials for the synthetic textile industry, such as Purified Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG), have witnessed sharp price increases over the past month. The cost of synthetic fibre melt surged by nearly 43%, rising from ₹83 per kg to ₹118 per kg.
He attributed the spike to supply constraints caused by the conflict, which has disrupted shipping routes and slowed imports. With reduced availability from traditional suppliers, industries have increasingly turned to countries like the United States and China, where procurement costs are higher.
Vij further noted that Saudi Arabia and Kuwait remain major suppliers of MEG, and any continued disruption in that region could lead to significant shortages. He warned that several manufacturing units had already begun scaling down or temporarily shutting operations due to escalating input costs.
Describing the government’s move as timely, he added that the manmade fibre sector — a rapidly expanding segment of the textile industry — stands to benefit significantly. The duty exemption is expected to improve access to raw materials and provide much-needed breathing space for manufacturers grappling with volatile global conditions.
The Centre’s intervention is seen as part of broader efforts to shield the domestic economy from external shocks while ensuring continuity in industrial production during a period of global instability.
