"The actual user condition on import of industrial urea/technical grade urea is being removed," Directorate General of Foreign Trade (DGFT) said in a notification.
According to an industry expert, the move is aimed at checking diversion, besides improving the ease of doing business.
Imports of industrial and technical grade urea have been less due to diversion of urea meant for the farm sector to industrial usage.
The country imports about 170,000 tonnes of urea every year. Last year, too, the DGFT had relaxed certain restrictions on imports.
India is dependant on urea imports as domestic output is lower than demand. Overseas purchase is being done via three state trading enterprises - STC, MMTC and IPL.