India Restores 7.5% Import Duty on Key Petrochemical Products: Impact on Polymer Supply Chains

July 2026 | Industry News

According to recent market reports, India has ended the temporary import duty exemption on around 40 key petrochemical products. The standard 7.5% customs duty is reported to have been restored from July 16, 2026.

The policy adjustment affects a wide range of raw materials, including polymers, polyurethane materials, solvents, and engineering plastics. This change may influence raw material costs and supply chain strategies for India's downstream manufacturing industries.

Background of the Temporary Duty Exemption

The temporary import duty exemption was introduced earlier in 2026 to support domestic supply stability during a period of global supply chain disruption and limited availability of certain petrochemical products.

During this period, imported materials including polypropylene (PP), engineering plastics, and other chemical raw materials benefited from reduced import costs, helping maintain stable supply for local processors and manufacturers.

Potential Impact on India's Polymer Industry

With import duties returning to normal levels, companies that rely on imported polymers and specialty materials may experience increased procurement pressure.

• Higher import costs for polymer raw materials
• Increased cost pressure on compounders and injection molding manufacturers
• Potential adjustments in global sourcing strategies
• Growing demand for cost-effective and high-performance material solutions

Affected Polymer and Engineering Plastic Categories

The duty adjustment covers a broad range of chemical and polymer products, including:

• Polyolefins such as Polypropylene (PP) and Ethylene-based polymers
• Engineering plastics including Polyamide (PA), Polycarbonate (PC), Polybutylene Terephthalate (PBT), Polyphenylene Sulfide (PPS), and Polyether Ether Ketone (PEEK)
• Specialty polymers such as ABS, SAN, PTFE, PMMA, POM, and other resin materials

Opportunities for Advanced Composite Materials

As manufacturers face increasing pressure to optimize material costs and improve product performance, lightweight composite materials are becoming increasingly important.

Long Fiber Reinforced Thermoplastics (LFT) provide an effective solution by combining lightweight characteristics with excellent mechanical strength, durability, and dimensional stability.

Typical applications include:

• PP-LGF: Automotive structural components, battery-related parts, and industrial applications
• PA6/PA66-LGF: High-strength automotive and mechanical components
• PPS-LGF: Heat-resistant applications requiring excellent stability

LFT-G Supporting Global Lightweight Material Solutions

Xiamen LFT Composite Plastic Co., Ltd. specializes in the development and manufacturing of Long Fiber Reinforced Thermoplastic (LFT) materials, providing customized solutions for automotive, electronics, industrial equipment, power tools, and other industries.

With advanced compounding technology and IATF 16949:2016 certification, LFT-G supports global customers seeking reliable, high-performance alternatives for traditional materials and conventional short fiber reinforced plastics.

Conclusion

The restoration of India's petrochemical import duties may bring changes to the local polymer supply chain and manufacturing cost structure.

For manufacturers looking to improve supply chain flexibility, reduce component weight, and enhance product performance, advanced composite materials such as LFT may provide new opportunities.