India cuts import duty to zero on 40 petrochemical, plastic products for 3 months

Published By DPRJ Universal | Published on Thursday, 2 April 2026

The Indian government has exempted customs duty on 40 petrochemical, plastic, and industrial raw materials for three months, effective until June 30, 2026. This move, citing public interest, aims to provide significant cost relief to downstream industries like packaging, automotive, textiles, construction, and agriculture, which depend heavily on these inputs often not produced sufficiently domestically. Ammonium nitrate also received an AIDC exemption, addressing agricultural input costs before the kharif sowing season.

The Central government on Tuesday announced a sweeping customs duty exemption on 40 categories of petrochemicals, plastics, and industrial raw materials. This measure reduces the effective import duty to nil on all listed goods for a period of three months, coming into force on Thursday and remaining effective through June 30, 2026. The Ministry of Finance invoked powers under Section 25(1) of the Customs Act, 1962, citing public interest as the basis for this relief.The exemption covers a wide range of critical industrial inputs, including basic petrochemicals such as anhydrous ammonia, toluene, styrene, methanol, acetic acid, and monoethylene glycol. It also includes chlorinated compounds like dichloromethane, vinyl chloride monomer, and polyvinyl chloride, along with engineering plastics such as polycarbonates, polyurethanes, polypropylene, polystyrene, and PEEK. Specialty resins, including epoxy, alkyd, unsaturated polyester, and phenol formaldehyde, are also covered. Additionally, ammonium nitrate received a simultaneous exemption from the Agriculture Infrastructure and Development Cess.This blanket zero-duty window signifies the government's intent to provide short-term cost relief to various downstream industries, including packaging, automotive, textiles, construction, and agriculture. These sectors heavily rely on these raw materials, many of which are not produced domestically in sufficient quantities, making import costs a significant burden. The AIDC exemption on ammonium nitrate specifically underscores the government's sensitivity to agricultural input costs ahead of the kharif sowing season.