A day after Prime Minister Narendra Modi-led Cabinet Committee on Security (CCS) reviewed the impact of the West Asia crisis on Indian economy, the Centre today granted full customs duty exemption on 40 categories of petrochemicals, plastics and industrial raw materials.The move brings effective import duty down to nil on listed goods for three months and will roughly cost the government Rs 1,800 crore. The Ministry of Finance notified the exemption under Section 25(1) of the Customs Act, 1962, citing public interest, on Thursday. It takes force from today and will be effective through June 30, 2026.The goods covered it include critical industrial inputs such as anhydrous ammonia, toluene, styrene, methanol, acetic acid, and monoethylene glycol (MEG); Chlorinated compounds; Engineering plastics and specialty resins.Ammonium nitrate is covered and will also receive a simultaneous exemption from the Agriculture Infrastructure and Development Cess.The blanket zero-duty window on such a broad basket of chemicals and polymers signals the government’s intent to provide short-term cost relief to downstream industries — including packaging, automotive, textiles, construction, and agriculture — that depend heavily on these raw materials. Many of these inputs are not produced domestically in sufficient quantities, making import costs a significant burden on manufacturers.The simultaneous AIDC exemption on ammonium nitrate — a key input in fertiliser production — underscores the government’s sensitivity to agricultural input costs ahead of the kharif sowing season.Sanjay Mangal, member, Central Board of Indirect Taxes, said, “The measures have been taken for continued availability of critical petrochemical inputs for domestic industry, reduce cost pressure on downstream sectors and ensure supply stability.”