top of page

By:

Akhilesh Sinha

25 June 2025 at 2:53:54 pm

Nadda's strategic meet signals urgency for chemical sector

New Delhi: As war simmers across the volatile landscape of West Asia, whether in the form of a direct confrontation between Israel, United States and Iran, or through Iran's hybrid warfare involving groups like Hezbollah and the Houthis, the tremors are no longer confined to the region's borders. They are coursing through the arteries of the global economy. India's chemicals and petrochemicals sector, heavily dependent on this region for critical raw materials, finds itself among the earliest...

Nadda's strategic meet signals urgency for chemical sector

New Delhi: As war simmers across the volatile landscape of West Asia, whether in the form of a direct confrontation between Israel, United States and Iran, or through Iran's hybrid warfare involving groups like Hezbollah and the Houthis, the tremors are no longer confined to the region's borders. They are coursing through the arteries of the global economy. India's chemicals and petrochemicals sector, heavily dependent on this region for critical raw materials, finds itself among the earliest and hardest hit by this geopolitical turbulence. It is in this backdrop that the recent meeting convened by Union Minister for Chemicals and Fertilisers J. P. Nadda at Kartavya Bhavan must be seen not as a routine consultation, but as a signal of strategic urgency. India's ambition to scale this sector from its current valuation of $220 billion to $1 trillion by 2040, and further to $1.5 trillion by 2047, will remain aspirational unless the country confronts its structural vulnerabilities with clarity and resolve. India today ranks as the world's sixth-largest producer of chemicals and the third-largest in Asia. The sector contributes 6-7 percent to GDP and underpins a wide spectrum of industries, from agriculture and pharmaceuticals to automobiles, construction, and electronics. It would be no exaggeration to call it the backbone of modern industrial India. Yet, embedded within this strength is a paradox. India's share in the global chemical value chain (GVC) stands at a modest 3.5 percent. A trade deficit of $31 billion in 2023 underscores a deeper issue: while India produces at scale, it remains marginal in high-value segments. This imbalance becomes starkly visible when disruptions in West Asia choke the supply of key feedstocks, shaking the very foundations of domestic industry. Supply Disruption The current crisis has laid this fragility bare. Disruptions in the supply of LNG, LPG, and sulfur have led to production cuts of 30-50 percent in several segments. With nearly 65 percent of sulfur imports sourced from the Middle East, the ripple effects have extended beyond chemicals to fertilisers, plastics, textiles, and other downstream industries. Strategic chokepoints such as the Strait of Hormuz have witnessed disruptions, pushing shipping costs up by 20-30 percent and adding further strain to cost structures. This is precisely where Nadda's emphasis on supply chain diversification and resilience appears prescient. In today's world, self-reliance cannot mean isolation; it must translate into strategic flexibility. While India imports crude oil from as many as 41 countries, several critical inputs for the chemical industry remain concentrated in a handful of sources, arguably the sector's most significant vulnerability. Opportunity Ahead A recent report by NITI Aayog outlines a pathway to convert this vulnerability into opportunity. It envisions raising India's GVC share to 5-6 percent by 2030 and to 12 percent by 2040. If achieved, the sector could not only reach the $1 trillion mark but also generate over 700,000 jobs. However, this transformation will demand more than policy intent, it will require sustained investment and disciplined execution. The most pressing challenge lies in research and innovation. India currently spends just 0.7 percent of industry revenue on R&D, compared to a global average of 2.3 percent. This gap explains why the country remains largely confined to basic chemicals, even as the world moves toward specialty and high-value products. Bridging this divide is essential if India is to climb the value chain. Equally constraining is the fragmented nature of the industry. Dominated by MSMEs with limited access to capital and technology, the sector struggles to compete globally. Cluster-based development models offer a pragmatic way forward, such as PCPIRs and the proposed chemical parks.

A Deep Dive into Sovereignty

With the commissioning of INS Nistar, India marks a leap in underwater military autonomy and signals its rising ambitions beneath the waves.

In geopolitics, power projection is not just about aircraft carriers or nuclear submarines. Increasingly, it is also about what lies beneath the surface. Earlier this month, India quietly commissioned INS Nistar - its first indigenously designed and built Diving Support Vessel (DSV), into the Eastern Naval Command at Visakhapatnam. It is an engineering feat that marks a subtle but significant evolution in India’s maritime posture, placing it in a rare club of nations that can independently design, construct and operate such high-tech vessels.


Unlike the sleek menace of destroyers or the stealth of submarines, DSVs do not grab headlines. But they are indispensable assets, especially in modern naval ecosystems that increasingly depend on deep-sea operations from underwater maintenance and salvage to submarine rescue and even seabed warfare. In an age where cables carry commerce and oil rigs support economies, DSVs serve as floating platforms for professional divers and remotely operated vehicles (ROVs) tasked with everything from pipeline inspection to recovering lost submarines.

DSVs must maintain precise positions near sensitive underwater structures, often in turbulent waters. Their role requires exacting propulsion systems, hyperbaric rescue modules, sonar and ROV suites, and helicopter decks - all integrated into a seaworthy hull capable of enduring extended deployments. Only around a dozen countries, including South Korea, Japan, China, and European powers like Norway and the UK, possess the technical wherewithal to pull it off. India has now joined their ranks.


At 118 metres long and displacing over 10,000 tonnes, INS Nistar is no less formidable than a small frigate. Designed by Hindustan Shipyard Limited (HSL) in Visakhapatnam, it reportedly boasts over 80 percent indigenous content - an encouraging milestone for India’s self-reliance drive in defence production. Its propulsion suite includes bow and stern thrusters, azimuth retractable systems, and dynamic positioning controls to enable stationary operations even in rough seas. It also carries a 15-tonne subsea crane, a diving bell, and advanced sonar systems, in addition to saturation diving capabilities at depths of up to 300 metres.


But Nistar’s strategic importance lies in its role as a mothership for India’s British-built Deep Submergence Rescue Vehicles (DSRVs), which were acquired in 2016 under a contract with JFD. While India had acquired two of these vessels for submarine rescue missions, their operational utility was limited due to the lack of suitable platforms to deploy them from. In one grim illustration, during the ill-fated 2021 incident involving the Indonesian submarine KRI Nanggala-402, Indian DSRVs aboard SCI Sabarmati were dispatched but could not be deployed in time to assist. The tragedy underlined a stark truth: rescue capability without rapid-deployment platforms is as good as absent.


With INS Nistar now in service on the eastern coast and a second DSV reportedly under construction, India will soon be able to mount timely submarine rescue missions on both flanks of the peninsula. This capability is particularly pertinent given the increasing presence of foreign submarines, including Chinese vessels, in the Indian Ocean Region (IOR). It also strengthens India’s ability to act as a net security provider in the region, potentially extending aid to other countries during underwater emergencies.


There is more to the story than rescue. The same systems that enable saturation diving and ROV operation also offer a nascent capability in what naval strategists increasingly refer to as seabed warfare. Undersea cables, oil infrastructure, and even autonomous sensors are becoming key nodes of maritime competition, particularly in the Indo-Pacific. Theoretically, INS Nistar, with its subsea reach and advanced tooling, could be refitted or tasked to support missions in these grey zones, especially as tensions mount over maritime infrastructure vulnerabilities. A vessel built for rescue may yet play a role in deterrence.


This commissioning also carries industrial significance. Hindustan Shipyard, long considered a laggard among India’s state-owned shipbuilders, has demonstrated it can deliver sophisticated naval assets, even amid pandemic-related disruptions. The keel of Nistar was laid in December 2019 and launched in September 2022, with final delivery taking place this month. That the vessel is now operational is a quiet vote of confidence in India’s beleaguered shipbuilding sector, which must scale up if India is to meet its maritime ambitions.


More broadly, Nistar reflects the trajectory of India’s maritime doctrine. As China expands its footprint from the South China Sea to the western Indian Ocean, India is methodically improving its own underwater capabilities in form of nuclear submarines, anti-submarine warfare (ASW) corvettes, seabed monitoring, and now, indigenous DSVs. The Indian Navy’s role is no longer limited to coastal defence or limited blue-water forays. It is building toward persistent presence, sustained by logistics ships and sovereign industrial capabilities.


Critics will rightly point out that one DSV does not a transformation make. India still imports its actual DSRVs, and despite Nista’'s launch, challenges in timely execution, cost overruns and technological dependency remain. Nonetheless, it is a start.


In Sanskrit, “Nistar” means deliverance or rescue. Aptly named, the vessel is a symbol of India’s effort to rescue itself from dependence on foreign technology and to dive deep (literally and figuratively) into the waters of strategic self-reliance.


“Shanno Varunah”— may the oceans be auspicious.


(The writer is a retired naval aviation officer and defence and geopolitical analyst. Views personal.)

 

1 Comment


Vilas Pandit
Vilas Pandit
Jul 29, 2025

The article has changed our understanding beyond aircraft carriers and

missile launching ships.

It introduces so many equipment with varied use and applications. It will be intersting to know about so many terms in this article.

Security of commeecial assets like Cables, Pipelines and oil rigs was never thought by us.

I would like to request author to explore and indicate about underwater technologies employed DRVs etc for horizontal deployment in Civil hydraulics and NDRF.

Honestly, this article opened floodgates of informtion regarding NAVY, Sea world and it's geoplitcal importance.

Like
bottom of page