Duty-Free Imports on nearly 40 critical petrochemical products may continue beyond June 30, as the government weighs extending the temporary customs duty exemption introduced earlier this year.
The Duty-Free Imports measure was brought in to support domestic manufacturers facing supply concerns and rising raw material costs.
With geopolitical tensions in West Asia raising fears of supply disruptions, policymakers are reviewing whether the relief should remain in place to protect industries that rely heavily on imported petrochemical inputs.
The government is assessing the impact of extending the zero-duty regime on a range of petrochemical products that are widely used across sectors such as chemicals, plastics, pharmaceuticals, textiles, packaging, and automotive manufacturing. A final decision is expected before the current exemption expires at the end of June.
Also Read: India-UK Trade Deal Takes Effect July 15: How Exporters Will Benefit
The duty waiver was introduced in April 2026 as part of efforts to ensure adequate availability of critical raw materials and shield manufacturers from sudden cost increases.
Officials are now reviewing the policy against the backdrop of growing uncertainty in global trade routes, particularly due to West Asia crisis. Concerns over possible disruptions in the Strait of Hormuz, one of the world's busiest oil and chemical shipping routes, have added urgency to the review process.
Some of the key products covered under the zero-duty import regime include:
These materials serve as essential feedstocks for several manufacturing industries and play a key role in production processes across the economy.
An extension of the duty-free import facility could offer continued cost relief to companies dependent on imported raw materials. Industry players have been closely monitoring the government's decision, as higher import duties could increase production costs and put pressure on profit margins.
Potential benefits of an extension include:
Chemical manufacturers, plastic processors, packaging companies, and pharmaceutical firms are among the sectors expected to gain the most from a continued exemption.
The move could also support smaller manufacturers and MSMEs that often face greater challenges in absorbing sudden increases in input costs.
While industry groups favor an extension, the government is also evaluating the potential revenue implications of continuing the customs duty exemption.
Officials are balancing the need to support domestic manufacturing with the impact on tax collections. The final decision will likely depend on evolving global market conditions, supply chain risks, and the broader economic outlook.
With the June 30 deadline approaching, businesses across the chemical and manufacturing value chain are awaiting clarity on whether the relief measure will continue for another term.
We use cookies to ensure you get the best experience on our website. Read more...
