India is considering extending customs duty exemptions on select petrochemical imports beyond June 30 as it assesses the needs of domestic industries that rely on such products as key inputs, a senior government official said on Tuesday.
The government had, in April, suspended import duties on 40 petrochemical products until June 30 to support downstream sectors, including plastics and pharmaceuticals, amid supply disruptions and higher input costs.
Speaking at an industry event in Hyderabad, Ravi Teja, deputy director at the Department of Commerce, said the government was examining whether the relief should continue beyond the current deadline.
“India will consider extending import tax exemptions on petrochemicals used for making plastics and pharmaceutical goods beyond June 30 to help local industries,” he was quoted as saying by Reuters.
India remains a net importer of several petrochemical derivatives, although domestic manufacturers also produce these materials using feedstocks such as liquefied petroleum gas (LPG), naphtha and ethane.
According to Teja, the government is monitoring developments before taking a final call on whether the duty relief should be extended.
The temporary suspension of import duties was introduced in April after the government waived taxes on a range of petrochemical products used in sectors such as plastics and pharmaceuticals. The step was aimed at easing pressure on downstream industries facing supply constraints and elevated costs.
