The Government of India has completely waived customs duty on approximately 40 critical petrochemical products in light of the ongoing conflict in West Asia and the consequent disruptions in global supply chains.

This measure, effective from 2 April 2026 until 30 June 2026, is a targeted intervention to shield domestic industries from supply disruptions and price spikes caused by the ongoing US–Iran conflict.

The exemption is currently scheduled to remain in place until 30 June 2026.

The exemption list covers a wide range of essential petrochemicals, including anhydrous ammonia, methanol, toluene, styrene, and acetic acid. Key polymers like polyethylene, polypropylene, and PVC are also included, alongside specialty chemicals such as epoxy resins and polyurethanes. This move is designed to lower raw material costs and stabilize production for industries facing global market volatility. 

"The government’s decision to waive customs duties on critical petrochemical intermediates is a timely and pragmatic intervention. By neutralizing the immediate cost pressures triggered by Middle East supply disruptions, this move ensures that domestic manufacturing momentum remains unhindered through the next quarter. For the specialty chemicals industry, this provides more than just short-term fiscal relief.  The industry, which is on a growth trajectory, requires stability to maintain production predictability and protect downstream value chains. We view this as a vital bridge that allows the industry to navigate current geopolitical volatility while continuing to focus on import substitution and long-term capacity building.” – Mr. Amitt Nenwani, Managing Director, Shivtek Spechemi Industries Ltd.