Analysis Customs 1 min read

India Leverages Refineries, Duty Cuts to Ensure Medicine Supply

TaxIntelHub · 09 April 2026

India reduced customs duties to zero on 40 petrochemical products starting April 1, 2026, and is leveraging local refineries to maintain medicine supplies amidst West Asia crisis-induced global supply chain disruptions.

The West Asia crisis has disrupted global supply chains, threatening the availability and affordability of essential medicines in India, which relies on imports routed through Kandla, Gujarat.

Refinery realignment
Bharat Petroleum and other domestic refiners are reallocating production to supply propylene, ammonia, and methanol.
Customs duty cuts
Zero customs duty on 40 petrochemicals eases costs for manufacturers.
Stable drug prices
Despite global API and solvent shortages, drug prices in India remain stable.

These measures aim to ensure the continued availability of essential medicines and protect Indian consumers from price spikes.

Monitor supply chain stabilization and the impact of relaxed quality norms on medicine quality.

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