**Executive Summary**
The second meeting of the Informal Group of Ministers (IGoM), chaired by Raksha Mantri Shri Rajnath Singh on April 02, 2026, addressed the impact of the ongoing West Asia conflict on India. The IGoM reviewed proactive measures to ensure trade stability, energy security, and industrial relief, emphasizing the need for round-the-clock monitoring. Key policy changes, including customs duty exemptions and fuel price caps, were implemented effective April 01, 2026, to mitigate domestic volatility.
**Key Points / Main Content**
**Trade and Industrial Relief Measures**
* **Customs Duty Exemptions:** A full customs duty exemption has been issued for 40 critical petrochemical products, valid until June 30, 2026.
* **SEZ Concessions:** Eligible units in Special Economic Zones (SEZs) are permitted to sell manufactured goods in the Domestic Tariff Area (DTA) at concessional customs duty rates from April 01, 2026, to March 31, 2027.
* **Taxation Clarity:** The Department of Revenue clarified via a March 31, 2026, notification that General Anti-Avoidance Rules (GAAR) will not be invoked for investments made prior to April 01, 2017.
* **Supply Stability:** These measures aim to reduce cost pressures for downstream sectors such as textiles, packaging, and pharmaceuticals.
**Energy and Fuel Price Regulation**
* **Aviation Fuel Cap:** A 25% cap has been imposed on the monthly increase of Aviation Turbine Fuel (ATF) prices for domestic operations to prevent sudden fare hikes.
* **LPG Supply Priority:** The government has prioritized domestic LPG supply by enhancing refinery production; 5 kg Free Trade LPG cylinders are being provided to support migrant labor and low-consumption households.
* **Industrial Energy:** Over 80% of pre-crisis commercial LPG supply levels are being maintained, and Piped Natural Gas (PNG) is being promoted as a reliable industrial alternative.
**Market Enforcement and Public Information**
* **Anti-Hoarding Actions:** Strict enforcement, including raids across States and Union Territories, is being conducted to curb the hoarding and black marketing of LPG.
* **Misinformation Control:** Authorities are monitoring social media for morphed images and misleading content intended to create panic; citizens are advised to rely strictly on official sources.
**Impact Analysis**
**Manufacturing and Downstream Sectors (Textiles, Packaging, Pharmaceuticals)**
**Impact**
Benefit from reduced raw material costs due to petrochemical duty exemptions and enhanced supply stability.
**Action Required**
Leverage concessional duty rates for DTA sales and utilize the duty-free petrochemical imports to maintain production levels.
**Investors**
**Impact**
Gained regulatory clarity regarding GAAR, which is expected to bolster investor confidence during global trade disruptions.
**Action Required**
Review investment portfolios in light of the clarified GAAR non-invocation for pre-2017 investments.
**Domestic Airline Industry and Passengers**
**Impact**
Protected from extreme volatility in operating costs and ticket prices due to the 25% monthly ATF price increase cap.
**Action Required**
Airlines must calibrate fare structures within the prescribed price cap limits.
**General Consumers and Migrant Labor**
**Impact**
Ensured access to essential cooking fuel (LPG) and protection from artificial price inflation caused by hoarding.
**Action Required**
Avoid panic buying, report malpractices by distributors, and utilize the 5 kg Free Trade cylinders where applicable.
**Private Auto LPG Operators**
**Impact**
Facing procurement challenges and supply constraints, leading to queues at PSU pumps.
**Action Required**
Encouraged to use petrol for dual-feed vehicles to ease pressure on LPG supplies.
Key Entities Referenced
Informal Group of Ministers (IGoM): A ministerial group established to monitor the evolving situation in West Asia and suggest proactive measures to mitigate its impact on India.
Shri Rajnath Singh: The Raksha Mantri (Minister of Defence) who chaired the meeting and directed calibrated responses to ensure India's preparedness for regional eventualities.
Ministry of Finance: The primary ministry responsible for implementing relief measures, including customs duty exemptions on petrochemicals and trade concessions for SEZ units.
General Anti-Avoidance Rule (GAAR): A tax regulation referenced in a Department of Revenue notification clarifying that its provisions will not be invoked for investments made prior to April 01, 2017.
Ministry of Defence
Second meeting of Raksha Mantri-led IGoM on
West Asia held in New Delhi
Round-the-clock monitoring & calibrated response must for
India to stay prepared & deal with any eventuality, says Shri
Rajnath Singh
Posted On: 02 APR 2026 9:32PM by PIB Delhi
The second meeting of the Informal Group of Ministers (IGoM), set-up to monitor the evolving situation
in West Asia and suggest proactive measures for its minimum impact on India, was held under the
chairmanship of Raksha Mantri Shri Rajnath Singh at Kartavya Bhawan-2, New Delhi on April 02, 2026.
The IGoM deliberated upon the recent developments at length, and the next steps to be taken by the
Government to mitigate any adverse impact arising due to the ongoing conflict.Minister of Finance & Corporate Affairs Smt Nirmala Sitharaman; Minister of Petroleum and Natural Gas
Shri Hardeep Singh Puri; Minister of Power Shri Manohar Lal; Minister of Chemicals & Fertilizers Shri
Jagat Prakash Nadda; Minister of External Affairs Dr S Jaishankar; Minister of Consumer Affairs, Food
and Public Distribution Shri Prahlad Joshi; Minister of State (Independent Charge) of the Ministry of
Science and Technology Dr Jitendra Singh; and Minister of Railways, Information and Broadcasting,
Electronics & Information Technology Shri Ashwini Vaishnaw attended the meeting.
In view of the “uncertain situation”, Raksha Mantri underlined the importance of round-the-clock
monitoring of the situation and the need to respond in a calibrated manner to deal with any eventuality.
He stressed on the need to leave no stone unturned to ensure that the people of the country face the
minimum effect of the conflict.
Chaired the second meeting of the Informal Group of Ministers (IGoM) in New
Delhi.
Underlined the importance of Round-the-Clock monitoring of the situation and
the need to respond in a calibrated manner to deal with any eventuality.
The IGoM was apprised of the measures being… pic.twitter.com/LT5douBImh
— Rajnath Singh (@rajnathsingh) April 2, 2026
During the meeting, the seven Empowered Groups of Secretaries briefed the IGoM on the steps being
taken to tackle the situation. The IGoM was apprised about measures undertaken by the Ministry of
Finance to address concerns arising due to global trade disruptions and provide relief and support to the
industry, especially manufacturing, and bolster investor confidence. These include the following:
Notification dated April 01, 2026 issued related to full customs duty exemption on 40 critical
petrochemical products till June 30, 2026.
Announcement of a special one-time relief measure for eligible units in SEZs to sell manufactured
goods in Domestic Tariff Area (DTA) at concessional customs duty rates to be effective from April01, 2026 to March 31, 2027.
Notification dated March 31, 2026 issued by DoR clarifying that the provisions of GAAR will not
be invoked in respect of investments made prior to April 01, 2017.
These measures will reduce cost pressures on downstream sectors including textiles, packaging and
pharmaceuticals, facilitate supply stability in the country and provide requisite clarity for investors
contemplating investments in India.
Shri Rajnath Singh appreciated the Government’s decision to impose a 25% cap on the monthly increase
in Aviation Turbine Fuel prices for domestic operations, with effect from April 01, 2026. This step will
help protect the people from sudden increase in fares, he said.
The Government has accorded highest priority to domestic LPG supply, with refinery production
enhanced to fully meet consumption requirements. The IGoM was informed that there have been no
reports of dry-out at LPG distributorships, and delivery of domestic LPG cylinders continues as per the
normal schedule. The temporary supply concerns arose due to instances of hoarding and black marketing,
which triggered panic buying in certain areas.
The Ministers were informed that strict enforcement action is being undertaken, with raids being carried
out across multiple States/Union Territories to curb hoarding and black marketing of LPG. Action has also
been taken against some LPG distributors who engaged in malpractices.
To support migrant labour and low-consumption households, the Government is ensuring adequate
availability of 5 kg Free Trade LPG cylinders, and since March 23, 2026, over 4.3 lakh such cylinders
have been sold. Special focus is being given to States where demand is higher.
The IGoM was apprised that industrial requirements dependent on commercial LPG are being met, with
over 80% of pre-crisis supply levels being maintained to ensure continuity of operations. Special meetings
have been held with ministries and stakeholders of different industries to understand their demand and
meet their needs. Oil PSUs are ensuring continued supply of Auto LPG across the country. However, some
supply constraints are being faced by private operators due to their procurement challenges, which is why
lines are being observed at PSU auto LPG pumps. Wherever the autos are dual feed and can use petrol,
they are being encouraged to use petrol.The Ministers were informed that the number of LPG deliveries per day has been increased significantly
to cater to the surge in demand caused by panic buying, ensuring that there is no shortage for consumers.
Piped Natural Gas (PNG) is being actively promoted for industrial use as a reliable alternative, wherever
feasible. PNG supplies for industrial usage are being ensured in sectors where it is already in use,
maintaining operational continuity.
The IGoM was also apprised that certain miscreants are deliberately attempting to create panic by
circulating photoshopped and morphed images and misleading content on social media. Such actions are
being closely monitored. Citizens are strongly advised not to believe or share unverified information and
to rely only on official sources for accurate updates.
The first meeting of the IGoM took place on March 28, 2026, during which Raksha Mantri had directed
the officials to closely monitor the situation, adopt a medium to long-term preparedness approach,
maintain high-level coordination, and ensure swift decision-making.
****
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