Government Extends Duty-Free Imports Of Key Petrochemicals Until 15 July

The Central Government has extended the full customs duty exemption on imports of selected petrochemical products for an additional 15 days. The exemption will now remain in force until 15 July 2026.

The decision is intended to support uninterrupted domestic supplies as global supply chains continue to recover from disruptions linked to the conflict in West Asia. The exemption, originally due to expire on 30 June, has been prolonged to ensure a gradual and stable transition.

Temporary Relief Following West Asia Disruptions

According to the Ministry of Finance, the duty waiver was introduced as a temporary measure to ease pressure on industries affected by supply chain disruptions caused by geopolitical tensions in West Asia.

The extension is expected to provide businesses with additional time to adjust while international trade conditions continue to improve.

Support For Domestic Manufacturing

The government said the exemption was introduced after Indian petroleum companies were instructed to prioritise the production of liquefied petroleum gas (LPG). This created a need to maintain adequate supplies of key petrochemical inputs through imports.

Officials added that extending the exemption would help prevent disruptions across manufacturing sectors that depend heavily on these materials.

Industries Expected To Benefit

The list of products covered under the exemption remains unchanged. Industries expected to benefit include:

• Plastics

• Packaging

• Textiles

• Pharmaceuticals

• Chemicals

• Automotive components

Other manufacturing sectors reliant on petrochemical feedstock and intermediates

Impact On Consumers

The Ministry of Finance said the continued exemption should also help consumers by maintaining the availability of finished goods and reducing the risk of supply-side shortages. By easing pressure on manufacturers, the measure is expected to support smoother production and minimise potential cost increases arising from supply constraints.

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Government's Position

The government reiterated its commitment to supporting India's manufacturing sector while global supply chains continue to stabilise.

Officials said the latest extension is designed to assist affected industries during the recovery period and facilitate an orderly return to normal import duty arrangements once market conditions have fully normalised.