India Temporarily Cuts Import Duty on Key Polymers to Zero Amid Supply Concerns

The Government of India has announced a temporary removal of import duties on several major polymers, reducing the existing 7.5% customs duty to zero for a limited period of three months. The move comes as part of efforts to ease supply pressures and stabilize domestic markets amid ongoing global disruptions.

According to the official notification published via the government’s gazette portal, the duty waiver applies to widely used polymer categories, including polypropylene (PP), polyethylene (PE), ethylene vinyl acetate (EVA), polyvinyl chloride (PVC), polystyrene (PS), and acrylonitrile butadiene styrene (ABS).

The decision is aimed at improving material availability in the domestic market, where supply chains have been strained due to geopolitical tensions and logistical challenges, particularly those linked to disruptions in the Middle East region.

Market participants expect the temporary duty exemption to encourage higher import volumes, helping processors and manufacturers secure raw materials at relatively lower landed costs. This could provide short-term relief to downstream industries such as packaging, automotive, construction, and consumer goods, which have been grappling with elevated input costs.

However, industry players also note that the impact may vary depending on global price trends and freight dynamics. While the duty cut reduces the cost burden, continued volatility in international markets may still influence overall pricing.

The three-month window indicates that the measure is designed as a short-term intervention, with authorities likely to reassess the situation based on market stability and supply conditions in the coming months.

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