Delhi waives import duty on critical petrochemicals to tackle supply disruptions

The Indian government today (2 April) announced a total waiver of customs duty on the import of several critical petrochemical products to ensure supply stability and provide relief to domestic industries and consumers amid the ongoing conflict in West Asia.

Valid until 30 June, the duty exemption is a targeted measure aimed at safeguarding global supply chains that have faced significant disruptions due to the regional war.

According to a statement from the Indian finance ministry, the move is expected to benefit various sectors heavily dependent on petrochemical feedstock and intermediates, including textiles, pharmaceuticals, plastics, packaging, chemicals, and automotive components.

"This measure has been taken as a temporary and targeted relief in order to ensure continued availability of critical petrochemical inputs for the domestic industry, reduce cost pressures on downstream sectors, and safeguard supply stability in the country," a press release by the ministry said, adding that the relief would eventually extend to the consumers of final products.

The list of goods now exempt from customs duty includes methanol, anhydrous ammonia, toluene, styrene, dichloromethane (methylene chloride), vinyl chloride monomer, polybutadiene, styrene-butadiene, and unsaturated polyester resins.

The conflict in West Asia has raised significant concerns for India, a major importer of petroleum and fertiliser, as shipping route disruptions threaten the steady flow of crude oil, natural gas, and agricultural inputs.

This latest intervention follows a series of fiscal measures taken by New Delhi last week to shield the economy from soaring global energy prices.

The Indian government previously slashed excise duty on petrol and diesel by Rs10 per litre, while simultaneously imposing export duties of Rs21.50 per litre on diesel and Rs29.50 per litre on Aviation Turbine Fuel (ATF) to prioritise domestic requirements.