Centre’s Duty Cut on Petrochemicals Brings Relief to Gujarat Textile Industry
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In a significant move to support domestic manufacturing, the Central government has announced a temporary reduction in customs duty on key petrochemical products, offering much-needed relief to Gujarat’s textile and chemical industries. The decision comes at a time when manufacturers have been struggling with rising input costs and disruptions in global supply chains.
The duty exemption, which will remain in effect from April 2 to June 30, 2026, removes around 8.25% import duty on several essential raw materials. These include widely used industrial inputs such as purified terephthalic acid (PTA), monoethylene glycol (MEG), methanol, acetic acid, and various polymers. These materials play a crucial role in the production of synthetic fibres, polyester fabrics, and Textile Processing, making the move particularly beneficial for the textile sector.
Industry experts believe that the reduction in duty is likely to ease cost pressures for manufacturers, especially in the man-made fibre segment, which relies heavily on petrochemical derivatives. With raw material costs having surged in recent months, the move could help stabilise production expenses and improve margins to some extent. Some estimates suggest that chemical prices could soften following the duty cut, although the extent of relief will depend on how quickly the benefits are passed on across the supply chain.
However, stakeholders caution that while the duty reduction provides temporary financial relief, it does not fully address the deeper challenges facing the industry. Supply constraints continue to be a major concern, with global disruptions linked to geopolitical tensions affecting the availability of key inputs. In addition, logistics challenges and fluctuating fuel prices have further complicated the situation for manufacturers operating on tight margins.
Gujarat, being one of India’s leading hubs for textiles and chemicals, is expected to benefit from this policy intervention in the short term. The move is likely to support production continuity and help businesses remain competitive in both domestic and export markets. At the same time, industry leaders emphasise the need for long-term solutions, including stable supply chains and consistent policy support, to ensure sustained growth.
Overall, the Centre’s decision comes as a timely step to cushion the impact of rising costs on the textile sector. While it may not resolve all structural issues, it provides a crucial window of relief for manufacturers navigating a challenging economic environment.
12:33 PM, Apr 03
Source : Centre’s Duty Cut on Petrochemicals Brings Relief to Gujarat Textile Industry
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