New Delhi: The Union finance ministry has announced a complete waiver of customs duties on a range of essential petrochemical products, according to a report by Hindustan Times. The decision is aimed at protecting domestic industries from the fallout of the ongoing US-Iran conflict, which has disrupted global supply chains and increased input costs.
As reported by Hindustan Times, the exemption will remain in force until June 30, 2026. The move comes at a time when escalating tensions in West Asia have strained critical shipping routes and affected the availability of key raw materials used across multiple industries.
👉 In a targeted relief, Government grants full customs duty exemption on critical petrochemical products in view of ongoing conflict in West Asia
— Ministry of Finance (@FinMinIndia) April 2, 2026
👉 Exemption will benefit sectors dependent on petrochemical feedstock and intermediates such as plastics, packaging, textiles,… pic.twitter.com/C0gp2AfDvf
The ministry described the measure as a targeted and temporary intervention intended to ensure uninterrupted access to crucial petrochemical inputs. These materials are widely used in sectors such as plastics, textiles, pharmaceuticals, packaging, chemicals, and automobile manufacturing.
The geopolitical crisis, marked by heightened hostilities between the United States and Iran, has already impacted global trade flows. Disruptions linked to strategic routes like the Strait of Hormuz have particularly raised concerns for countries like India, which depend significantly on imported petrochemical feedstock.
According to the report, the government’s decision is expected to ease cost pressures on downstream industries while also helping to contain inflation. By lowering the landed cost of imports, the exemption is likely to provide relief to manufacturers and, in turn, benefit consumers.
The finance ministry emphasised that the step is part of a broader effort to maintain supply stability during a period of global uncertainty. With international energy markets under strain, policymakers are seeking to minimise the domestic impact of external shocks.
The development underscores India’s vulnerability to global supply disruptions and highlights the government’s attempt to shield key sectors from volatility triggered by geopolitical tensions, Hindustan Times reported.Â
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