{"url":"https://epaper.indiatimes.com/timesepaper/publication-the-economic-times,city-delhi.cms?source=homepage&medium=ePaper_content&campaign=prime_discovery&_gl=1*thn62o*_gcl_au*MTkzMDE2NjM2Ny4xNzc0NTQ0OTE2*_ga*Mjg4MjMwMDkxLjE3NzQ1NDQ5MTQ.*_ga_WZ3Z4GGVRC*czE3NzUzODQ5MjEkbzIkZzEkdDE3NzUzODU0NDIkajU3JGwwJGgw","title":"Govt Shields India Inc from Iran War Shock","domain":"epaper.indiatimes.com","imageUrl":"https://images.pexels.com/photos/9407356/pexels-photo-9407356.jpeg?auto=compress&cs=tinysrgb&h=650&w=940","pexelsSearchTerm":"Indian oil refinery","category":"World","language":"en","slug":"bc0d586e","id":"bc0d586e-6e8d-4fc0-a31b-b1ed2bc97b3f","description":"Indian government rolls out targeted measures to shield businesses from Iran war disruptions in oil, shipping, and trade.","summary":"## TL;DR\n- Indian government rolls out targeted measures to shield businesses from **Iran war** disruptions in oil, shipping, and trade.\n- Key actions include **SEZ domestic sales** up to **30%**, **RBI export credit** to **450 days**, and fuel excise cuts to **Rs 3/litre petrol**, zero diesel.\n- Total support tops **Rs 1,800 crore**, focusing cash flow, costs, and supplies without broad interventions.[[1]](https://m.economictimes.com/news/economy/policy/a-shield-for-india-inc-how-govt-is-blunting-the-iran-war-shock/articleshow/129984979.cms)\n\n## The story at a glance\nIndia's government has deployed practical interventions over recent weeks to buffer **India Inc** against the **Iran war**'s volatility in global oil prices, disrupted shipping routes through the Strait of Hormuz, and strained trade flows. Exporters face elevated freight and insurance costs, while manufacturers grapple with input price swings and delays. Reported prominently amid escalating West Asia tensions, these steps prioritise resilience for key sectors like exports and manufacturing.[[1]](https://m.economictimes.com/news/economy/policy/a-shield-for-india-inc-how-govt-is-blunting-the-iran-war-shock/articleshow/129984979.cms)\n\n## Key moments & milestones\n- Ongoing **Iran war** disrupts logistics, spikes oil above **$100/barrel**, hits exporters with higher costs and delays.[[2]](https://m.economictimes.com/news/economy/indicators/crude-sustaining-above-100-will-push-inflation-beyond-6-trigger-rate-hikes-hsbc/articleshow/130001175.cms)\n- Government launches export relief: **SEZ units** sell **30%** output domestically **April 2026–March 2027** at **5-15%** duties; extends **RoDTEP** to **September 30, 2026**; **Rs 497 crore** for freight/insurance.[[1]](https://m.economictimes.com/news/economy/policy/a-shield-for-india-inc-how-govt-is-blunting-the-iran-war-shock/articleshow/129984979.cms)\n- **RBI** stretches export credit to **450 days** (from **270**), proceeds realisation to **15 months** (from **9**), easing liquidity strains.[[1]](https://m.economictimes.com/news/economy/policy/a-shield-for-india-inc-how-govt-is-blunting-the-iran-war-shock/articleshow/129984979.cms)\n- Removes duties on petrochemical feedstocks until **June 30, 2026**, aiding plastics, pharma, textiles; cuts fuel excise to **Rs 3/litre petrol**, zero diesel.[[1]](https://m.economictimes.com/news/economy/policy/a-shield-for-india-inc-how-govt-is-blunting-the-iran-war-shock/articleshow/129984979.cms)\n- Deploys **Rs 1,800 crore** aggregate support, monitors critical inputs for swift allocation tweaks; plans **₹2-2.5 lakh crore** credit guarantee.[[1]](https://m.economictimes.com/news/economy/policy/a-shield-for-india-inc-how-govt-is-blunting-the-iran-war-shock/articleshow/129984979.cms)\n\n## Signature highlights\nGovernment measures layer protection across trade, finance, and costs, softening war impacts without market distortions.\n\n- **Export package** lets **SEZ** firms access domestic buyers at low duties, preserving output amid shipping reroutes; **Rs 497 crore** directly offsets premiums, sustaining margins.[[1]](https://m.economictimes.com/news/economy/policy/a-shield-for-india-inc-how-govt-is-blunting-the-iran-war-shock/articleshow/129984979.cms)\n- **RBI** extensions counter payment delays from Hormuz avoidance, cutting default risks for working capital-dependent exporters.[[1]](https://m.economictimes.com/news/economy/policy/a-shield-for-india-inc-how-govt-is-blunting-the-iran-war-shock/articleshow/129984979.cms)\n- Petrochemical duty waiver until **June 2026** stabilises supplies for downstream industries like auto parts and packaging, where inputs dominate costs.[[1]](https://m.economictimes.com/news/economy/policy/a-shield-for-india-inc-how-govt-is-blunting-the-iran-war-shock/articleshow/129984979.cms)\n- Fuel cuts cascade savings: lower diesel trims freight for agri, retail, e-commerce; helps cap inflation as **Brent** hovers **$100**.[[2]](https://m.economictimes.com/news/economy/indicators/crude-sustaining-above-100-will-push-inflation-beyond-6-trigger-rate-hikes-hsbc/articleshow/130001175.cms)\n\n| Measure | Scope | Duration/Benefit |\n|---------|-------|------------------|\n| **SEZ domestic sales** | Up to **30%** output | **Apr 2026–Mar 2027**, **5-15%** duties[[1]](https://m.economictimes.com/news/economy/policy/a-shield-for-india-inc-how-govt-is-blunting-the-iran-war-shock/articleshow/129984979.cms) |\n| **Fuel excise** | Petrol **Rs 3/l**, diesel **0** | Immediate, broad logistics relief[[1]](https://m.economictimes.com/news/economy/policy/a-shield-for-india-inc-how-govt-is-blunting-the-iran-war-shock/articleshow/129984979.cms) |\n| **Petrochem exemption** | Key feedstocks | Till **Jun 30, 2026**[[1]](https://m.economictimes.com/news/economy/policy/a-shield-for-india-inc-how-govt-is-blunting-the-iran-war-shock/articleshow/129984979.cms) |\n| **Total fiscal aid** | Duty waivers, packages | **Rs 1,800 crore**[[1]](https://m.economictimes.com/news/economy/policy/a-shield-for-india-inc-how-govt-is-blunting-the-iran-war-shock/articleshow/129984979.cms) |\n\nGlobal context: **Iran war** snarls factories worldwide, with **March PMI** distorted by delays; Asia, reliant on **80%** Hormuz oil, sees slowdowns.[[3]](https://m.economictimes.com/small-biz/trade/exports/insights/global-economy-factory-input-costs-soar-worldwide-as-iran-war-snarls-up-supply-chains/articleshow/130013452.cms)\n\n## Why it matters\nThe **Iran war** threatens India's growth via oil shocks and supply snarls, potentially trimming **FY27 GDP** by **1 ppt** and lifting inflation **1.5 ppt** if prolonged.[[4]](https://economictimes.indiatimes.com/news/economy/indicators/iran-war-shock-middle-east-conflict-could-cut-1-ppt-from-indias-fy27-gdp-outlook/articleshow/129920336.cms) Decision-makers gain breathing room through cost buffers and credit ease, sustaining exports and manufacturing amid **$100+ crude** risks that could force **RBI hikes** past **6% CPI**.[[2]](https://m.economictimes.com/news/economy/indicators/crude-sustaining-above-100-will-push-inflation-beyond-6-trigger-rate-hikes-hsbc/articleshow/130001175.cms) Watch **RBI policy** next week, Hormuz flows, and credit scheme rollout for escalation signals.","hashtags":["#iranwar","#india","#economy","#oilprices","#govtmeasures","#exportrelief"],"sources":[{"url":"https://epaper.indiatimes.com/timesepaper/publication-the-economic-times,city-delhi.cms?source=homepage&medium=ePaper_content&campaign=prime_discovery&_gl=1*thn62o*_gcl_au*MTkzMDE2NjM2Ny4xNzc0NTQ0OTE2*_ga*Mjg4MjMwMDkxLjE3NzQ1NDQ5MTQ.*_ga_WZ3Z4GGVRC*czE3NzUzODQ5MjEkbzIkZzEkdDE3NzUzODU0NDIkajU3JGwwJGgw","title":"Original article"},{"url":"https://m.economictimes.com/news/economy/policy/a-shield-for-india-inc-how-govt-is-blunting-the-iran-war-shock/articleshow/129984979.cms","title":""},{"url":"https://m.economictimes.com/news/economy/indicators/crude-sustaining-above-100-will-push-inflation-beyond-6-trigger-rate-hikes-hsbc/articleshow/130001175.cms","title":""},{"url":"https://m.economictimes.com/small-biz/trade/exports/insights/global-economy-factory-input-costs-soar-worldwide-as-iran-war-snarls-up-supply-chains/articleshow/130013452.cms","title":""},{"url":"https://economictimes.indiatimes.com/news/economy/indicators/iran-war-shock-middle-east-conflict-could-cut-1-ppt-from-indias-fy27-gdp-outlook/articleshow/129920336.cms","title":""}],"viewCount":3,"publishedAt":"2026-04-05T10:40:47.540Z","createdAt":"2026-04-05T10:40:47.540Z","articlePublishedAt":null}