Indian plastic exporters are experiencing a tangible revival in order flows following a US Presidential Proclamation that took effect in late February 2026. The Proclamation introduces a temporary 10% ad valorem duty on a broad range of Indian plastic products for a period of 150 days — replacing the earlier punitive 40% tariff that had effectively shut Indian exporters out of the American market.
The temporary duty reduction is further bolstered by accelerating momentum toward a broader US-India bilateral trade agreement, which if concluded could cement India’s competitive position in the US market on a permanent basis. Both governments have signalled a desire to conclude preliminary framework negotiations before the 150-day tariff window closes.
The relief comes at a critical juncture. The United States remains India’s single largest plastics export destination, and the earlier 40% tariff had caused order cancellations, buyer diversification, and a measurable decline in export volumes over the prior two quarters. Industry exporters are now working rapidly to rebuild relationships with American buyers and rebuild order books.
In one of the most significant market stabilisation moves of the year, Reliance Industries (RIL) announced Price Protection for Polypropylene (PP) and Polyethylene (PE) effective from April 8 through April 22, 2026. The announcement is designed to give downstream processors certainty over input costs during a period of extreme volatility.
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