India will consider extending import tax exemptions on petrochemicals used for making plastics and pharmaceutical goods beyond June 30 to help local industries, Ravi Teja, deputy director at the Department of Commerce, said on Tuesday.
In April, India suspended the import tax on 40 petrochemical products until June 30 to help industries across sectors that are grappling with pharmaceuticals shortages caused by the Iran war.
India is a net importer of such petrochemical derivatives though it also produces them domestically using feedstocks such as liquefied petroleum gas, naphtha, and ethane.
"They (Ministry of Commerce) are monitoring the situation. Final Decision on extension will be taken only after assessing the geopolitical situation and if ministry feels it is necessary," Teja told Reuters.
Days after the U.S.-Israeli strikes on Iran, the Indian government ordered companies to divert locally produced petrochemical components to making LPG, mostly used as cooking gas.