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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.

Army chief reviews J&K security after Pahalgam terror attack that killed 26



NEW DELHI: Army Chief General Upendra Dwivedi on Friday reviewed the security situation and ongoing ground operations in Jammu and Kashmir following the Pahalgam terror attack that killed 26 people, most of them tourists.


General Dwivedi joined senior Army commanders for a security review meeting chaired by Lieutenant Governor Manoj Sinha. According to sources, the L-G said those behind the Pahalgam attack must be hunted down and made to pay a heavy price for the brutal act.


Sinha directed the Army Chief to ensure not only that the attackers are brought to justice, but also that operations to dismantle the terror infrastructure and its support system are intensified.


He added that the nation has complete trust in the bravery of the Army, police, and Central Armed Police Forces (CAPFs), and urged them to work together closely to identify and eliminate the perpetrators, enablers, and overground workers (OGWs) involved in the attack.


“Every person behind or supporting the Pahalgam terror attack, no matter where they are or who they are linked to, must be found and held accountable for this cowardly and brutal crime against our people,” Sinha told the Army leadership.


After arriving in Srinagar, General Dwivedi visited Awantipora, the base of the Counter Insurgency Force—Victor, where he was briefed on operations following the attack, a source said. He then moved to the 15 Corps headquarters at Badami Bagh Cantonment and met Lt Gen Prashant Srivastava, the Corps Commander.


The Army Chief was updated on the actions being taken to stop terrorist activity and respond to ceasefire violations by the Pakistan Army along the Line of Control (LoC). Top officers, including the Director General of J&K Police and other senior officials, discussed the current situation and future plans.


General Dwivedi also briefed L-G Sinha at Raj Bhawan, along with Lt Gen MV Suchindra Kumar, GOC-in-C Northern Command, Deputy Army Chief Lt Gen Pratik Sharma, and Lt Gen Srivastava.


On the night before the Army Chief’s visit, there was heavy firing along the LoC. “Around 600 rounds were fired from the Pakistan side at Tutmari Gali in Kupwara. In response, the Indian Army fired about 1300 rounds,” an officer said. “Pakistan troops fired from multiple points along the LoC,” he added.

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