New Delhi: The Central government has extended the full Customs Duty exemption on imports of critical petrochemical products until July 15, 2026, providing temporary relief to industries affected by global supply chain disruptions arising from the conflict in West Asia.
The Ministry of Finance announced the extension on Tuesday, stating that the move is intended to ensure a smooth transition as the international supply situation gradually stabilises.
Exemption extended by 15 days
The government had earlier granted a full Customs Duty exemption on imports of specified critical petrochemical products until June 30, 2026.
With the latest decision, the exemption has been extended by another 15 days and will now remain in force until July 15, 2026.
According to the Ministry of Finance, the list of eligible petrochemical products remains unchanged from the earlier notification.
Relief amid supply chain disruptions
The temporary exemption was introduced following disruptions in global supply chains caused by the conflict in West Asia.
During this period, Indian petroleum companies were asked to prioritise the production of liquefied petroleum gas (LPG), making it necessary to facilitate imports of certain petrochemical products to maintain adequate domestic availability.
The government said the latest extension would help avoid disruptions while supply conditions continue to improve.
Manufacturing sectors expected to benefit
The Customs Duty exemption is expected to benefit several industries that rely on petrochemical feedstock and intermediates.
These include the plastics, packaging, textiles, pharmaceuticals, chemicals and automotive components sectors, along with other manufacturing industries.
The government said the measure would also help stabilise the supply of raw materials and reduce cost pressures for manufacturers.
Consumers may also benefit
Apart from supporting manufacturers, the Centre said the extension is expected to provide indirect relief to consumers by helping ensure the availability of finished products and preventing sudden increases in production costs.
The government reiterated its commitment to supporting India’s manufacturing sector while maintaining stable supply chains for essential industrial inputs.
Conclusion
The extension of the Customs Duty exemption reflects the Centre’s effort to cushion Indian industries from the impact of global supply disruptions while ensuring a gradual return to normal trade conditions. The government will continue to monitor the international situation and take further measures if required.