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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 finalises ₹85,000 cr procurement push with focus on Make-in-India

  • PTI
  • Apr 22, 2025
  • 2 min read


NEW DELHI: The Indian Army has finalized major procurement deals worth ₹85,000 crore for the year 2024-25, focusing strongly on self-reliance. “A total of 26 capital procurement contracts amounting to ₹85,000 crore have been approved in the capital budget, and only three of them involve foreign vendors,” an Army source said.


Regarding the use of the capital budget, the source added, “The Army spent ₹35,000 crore, and 95% of that went to domestic suppliers, further strengthening the Make-in-India initiative.”


Army officials believe that spending on local procurement not only boosts defence capabilities but also supports economic growth and job creation. “This historic ₹85,000 crore procurement marks a strong push for self-reliance and significantly enhances India’s military readiness for the future,” a defence official stated.


He also noted that the focus on local procurement and indigenous production is “not just improving operational strength but also giving a strong boost to the economy through job creation, investment, and industrial development.”

This move, part of the Aatmanirbhar Bharat initiative, aims to grow India’s domestic defence manufacturing sector. “It is expected to increase GDP, promote economic growth, and generate thousands of skilled jobs,” the official added.


For 2024-25, the total defence budget was ₹6,21,541 crore. In the Union Budget for 2025-26, ₹6,81,210.27 crore has been earmarked for the Ministry of Defence. The capital outlay for 2024-25 stands at ₹1.72 lakh crore, which is used for acquiring new weapons, systems, and equipment.


“In today’s changing geopolitical environment and evolving modern warfare trends, India’s armed forces must be equipped with advanced technology and cutting-edge weapons. With this in mind, ₹1,80,000 crore has been set aside for capital expenditure, which is a 4.65% increase over the 2024-25 budget estimate,” the Ministry of Defence said.


DefExpo may be held in Ranchi

If all goes as planned, the next edition of India’s DefExpo could take place in Ranchi, Jharkhand. “The international five-day DefExpo is likely to be hosted in Ranchi, the Lok Sabha constituency of Minister of State for Defence Sanjay Seth,” a source revealed.

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