The Indian government has announced a temporary exemption from customs duties on 40 critical petrochemical feedstocks and intermediates until the end of June. This decision, made by the finance ministry, is aimed at cushioning domestic industries from supply disruptions caused by the ongoing war in Iran. Key inputs affected include ammonia, essential for fertilizer production and food security. The ministry described this as a “targeted relief” to ensure the availability of essential petrochemical inputs, reduce cost pressures on downstream sectors, and maintain supply stability. Industries such as plastics, packaging, textiles, pharmaceuticals, chemicals, and automotive components, which heavily rely on these petrochemical inputs, are expected to benefit significantly. Economists have raised concerns that supply disruptions could lead to higher inflation and interest rates globally, especially as India's retail inflation rose to 3.21% in February from 2.74% in January. The government has also implemented measures to ease fuel prices, including cutting import duties on petrol and diesel.