The government is exploring ways to increase domestic production of induction cookers, petrochemicals, and other essential industrial inputs, as the West Asia war shows signs of continuing for some time, according to two people in the know.
Officials from the department for promotion of industry and internal trade (DPIIT), the power ministry and the directorate general of foreign trade (DGFT) reviewed strategies to boost output in sectors that could face supply disruptions if the war continues for the next few months, said one of the people mentioned above.
“Discussions centred on accelerating production of induction cookers and vessel heaters, strengthening the petrochemical value chain, and ensuring adequate availability of gunny (bori) bags—seen as critical for both industrial use and agricultural supply chains,” the other person said.
The government has already taken pre-emptive steps by cutting import duties on several key petrochemical products to cushion against potential shortages and price spikes.
Officials said the move is part of a broader contingency framework, with ministries preparing for multiple scenarios, including a prolonged conflict that could disrupt shipping routes, inflate logistics costs and tighten availability of critical inputs.
The government on Thursday announced a temporary waiver on customs duties for select essential petrochemical imports, which will remain in force until 30 June. The move aims to support supply chains across key industries, including pharmaceuticals, chemicals, textiles, and manufacturing, ensuring the steady availability of crucial inputs amid global uncertainty.
Industries that rely heavily on petrochemical raw materials— including plastics, packaging, automotive components, and various manufacturing sectors—are expected to benefit from this relief. The decision is estimated to result in a revenue impact of around ₹1,800 crore for the government.
Energy supply concerns
The move comes in response to disruptions to global shipping routes caused by the conflict in West Asia, which has raised concerns about the availability of critical imports such as fertilisers, crude oil, and natural gas. As a country that depends significantly on imports for both fertilisers and petroleum, India faces significant supply risks.
Meanwhile, international crude oil prices have surged by nearly 50% following military action by the US and Israel against Iran on 28 February, which led to strong retaliatory measures from Tehran and further escalated tension in the region.
India relies heavily on crude oil and liquefied petroleum gas (LPG) imports from the Gulf region, making a shift to electric cooking options, such as induction stoves, an effective way to ease household energy expenses.
On Thursday, the petroleum and natural gas ministry said the government is also working to expand piped natural gas (PNG) connections to reduce dependence on LPG, especially amid the West Asia war.
Speaking at an inter-ministerial briefing on Recent Developments in West Asia late last month, Sujata Sharma, joint secretary in the ministry, highlighted that multiple initiatives have been undertaken to encourage the wider adoption of PNG across the country.
"The government has taken several steps to promote PNG connections. This is also important because it will help ease the pressure on LPG," Sharma said.
"I would like to remind you that the government had issued an order stating that 10% additional commercial LPG will be provided if state governments promote PNG expansion through ease-of-doing-business measures," she said.