Source : INDIA TODAY NEWS
The government has waived customs duty on a wide range of petrochemical inputs, stepping in to protect domestic manufacturing from supply disruptions triggered by the escalating conflict in West Asia.
The Finance Ministry has reduced duty to nil on 40 petrochemical products, with the exemption coming into effect from April 2 and remaining in force till June 30, 2026.
The notification signals a time-bound but urgent intervention as global energy-linked supply chains come under stress.
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The decision comes at a time when tensions in West Asia, which sits at the heart of global crude and petrochemical flows, are driving volatility in feedstock availability and pricing.
Since most petrochemicals are derived from crude, any disruption in oil markets quickly pushes up input costs for manufacturing industries.
The duty waiver covers both basic feedstocks and advanced polymers that form the backbone of industrial production. Key inputs such as methanol, monoethylene glycol, phenol, acetic acid and purified terephthalic acid are included, along with widely used polymers like polyethylene, polypropylene, polystyrene and PVC.
The list also includes higher-end materials such as epoxy resins, polycarbonates, PET chips and polyurethanes, highlighting the scale of the intervention.
By eliminating customs duty, the government is lowering the landed cost of these imports at a time when global prices remain elevated.
This is expected to ease the burden on domestic manufacturers who are facing rising costs and uncertain supply conditions due to geopolitical tensions.
The impact will be felt across sectors that rely heavily on petrochemical inputs, including plastics, packaging, textiles, pharmaceuticals, chemicals and automobiles.
Any sustained increase in feedstock prices typically feeds into broader inflation, making this intervention significant beyond just industry.
There is also a macroeconomic angle to the move. While India has so far avoided sharp retail fuel price spikes seen in some global markets, second-round effects from petrochemicals remain a key inflation risk. The duty cut reflects a pre-emptive effort to contain cost pressures before they spread through supply chains.
The time-bound nature of the exemption suggests policymakers are treating the current disruption as a near-term shock, but the breadth of the relief indicates concern over the intensity of global volatility. If tensions in West Asia persist, further policy steps could follow.
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SOURCE :- TIMES OF INDIA
