CBIC waives full customs duty on critical petrochemical products

The Finance Ministry has announced a complete customs duty waiver on 40 petrochemical products, effective through June 30, 2026, in a strategic move to insulate domestic manufacturers from supply chain disruptions and price volatility triggered by the ongoing West Asia conflict.

These products serve as essential raw materials across various industrial sectors, and the intervention aims to stabilise production costs amid regional instability. According to official estimates, this tax break is expected to result in a revenue loss of approximately Rs 1,800 crore to the national exchequer over the three-month period.

The Ministry clarified that the decision was prompted by the escalating West Asia conflict and the resulting turbulence in global supply chains. By removing these trade barriers, the government aims to shield the domestic market from external shocks.

This is third measure from Central Board of Indirect Taxes and Customs. First, last week. It slashed excise duty on petrol and diesel by Rs 10 a litre as it looked to shield consumers from the impact of rising global crude prices amid the ongoing war, also imposed an export duty of Rs 21.50 per litre on diesel and Rs 29.50 per litre on Aviation Turbine Fuel (ATF). Excise duty on petrol has been slashed to Rs 3 a litre, while on diesel it is zero currently.

GE faces penalty action for missing multiple Tejas engine deadlines

With GE Aerospace missing multiple deadlines for supply of F404-IN20 engines for powering Tejas LCA Mk1A, penalty against the US-based company outlined in the August 2021 contract with the Hindustan Aeronautics Limited will be automatically invoked for breach of delivery timeline per engine. Of the overall 99 engines contracted for a cost of $716 million, GE has supplied 5 engines and the 6th is on way to India.

The delivery was supposed to start in 2023 but it got delayed for about two years and the first engine was supplied only in March 2025.

A subsequent contract was also inked with GE on November 7, 2025, for approximately $ 1 billion, to support 97 more LCA Mk1A jets, and the deliveries are supposed to take place from 2027 and end in 2032.

As per the ‘pessimistic assessment,’ GE has promised to supply 20 of 99 F404-IN20 engines towards December, this year, as they claim to have overcome global supply chain issues, top HAL sources revealed. The best case scenario, however, is for shipment of 25 engines by the end of the year, they added.

Hormuz crisis chokes shipping, sends freight rates soaring fivefold

More than a month into the West Asia crisis triggered by the US–Iran conflict, shipping and trade remain in deep turmoil, marked by extreme volatility and uncertainty.

The disruption of the Strait of Hormuz — a critical artery for global energy flows — has severely impacted maritime traffic, pushing freight rates up nearly fivefold, inflating war-risk insurance premiums by 10X, and imposition of emergency surcharges across key trade lanes.

Prior to the crisis, around 150 vessels transited the strait daily; that number has now dropped to just four or five. Similarly, deliveries are now arriving two to three weeks behind schedule, as vessels reroute via longer passages such as the Cape of Good Hope, increasing both transit time and costs.

FMCG firms likely to hike prices by 3-4% in June quarter due to raw material cost pressures: Nuvama report

FMCG companies are likely to hike prices by 3-4 per cent in the June quarter to mitigate raw material cost pressures, according to a report by Nuvama Institutional Equities. It added that in categories such as paints, edible oils, soaps and detergents, it could be even higher.

“In our view, companies typically maintain 30–45 days of raw material and finished goods inventory. Hence, we forecast price hikes are likely to be in Q1 FY27. Higher crude oil prices and rupee depreciation have raised input cost pressures, mainly through higher packaging costs, which comprise about 20 per cent of costs. We forecast at least 3–4 per cent price hikes in Q1 FY27 if current raw material inflation persists. Paints, edible oil, soaps and detergents could see even higher hikes,” Abneesh Roy, Executive Director & Head of Research Committee, Nuvama Institutional Equities, stated in the report.

He added that to manage rising input costs, FMCG companies are recalibrating pricing strategies and packaging structures through grammage reduction in smaller packs to maintain affordability and price hikes in larger packs, where consumer sensitivity is lower.

Published on April 3, 2026