Citing information from the Economic and Commercial Office of China’s Embassy in India, a June 9 report by India’s Economic Times quoted officials from the Ministry of Commerce and Industry of India stating that the country is considering extending the import tax exemption for petrochemical raw materials used in plastic and pharmaceutical manufacturing beyond June 30 to boost industrial development.
In April this year, India scrapped import duties on 40 types of petrochemical products including PVC, with the preferential policy set to expire on June 30.
If India extends the tax exemption beyond June 30, Chinese PVC supplies will enjoy stronger price competitiveness in the short run and drive up China’s PVC exports to India.
For one thing, it will smooth out shipment schedules, preventing a sharp collapse in exports after late June and avoiding cost hikes caused by surging ocean freight rates due to concentrated short-term shipments.
For another, a policy extension indicates India’s view that tight global chemical supply remains unresolved. External demand will continue to underpin China’s PVC market, supporting positive export prospects going forward.
In the long term, however, India’s domestic capacity expansion will gradually replace imports. New PVC production capacities of Reliance Industries and Adani Group are slated to come online successively from 2027 to 2028, and India’s import demand will shrink gradually starting in 2029.
In addition, India’s policy environment carries persistent uncertainty. If domestic inflation cools down, the government may terminate the tax exemption ahead of schedule.
Post time: Jun-23-2026