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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.

BMC auctioning three land parcels to raise funds, says Aaditya

Updated: Oct 22, 2024

Aaditya

Mumbai: Shiv Sena (UBT) leader Aaditya Thackeray on Thursday alleged Mumbai’s civic body had decided to auction three land parcels to raise funds and make up for the “loot” of the metropolis by the Eknath Shinde government.


The Brihanmumbai Municipal Corporation, which is being run by an administrator now, has decided to auction the Chhatrapati Shivaji Maharaj Mandi (Market), the Brihanmumbai Electric Supply and Transport (BEST) Malabar Hill Receiving Station and the Worli Asphalt Plant, Thackeray pointed out.


“The sale of Mumbai is being done by the Eknath Shinde regime to benefit its favourite builders and contractors,” he alleged.


A criminal investigation will be conducted into the matter after the Maha Vikas Aghadi government comes to power, Thackeray added.


“So on one end, they looted the BMC and Mumbai and gave the money to their favourite contractors. Now, by auctioning these iconic and important land parcels, the BMC will be left without both funds and plots,” the Shiv Sena (UBT) leader and former state minister claimed.


When Shiv Sena started controlling the BMC in 1997, its finances were in deficit but by 2022 his party turned around the fiscal health of the civic body, Thackeray said.


Alleging that the Shinde government wants to drive Kolis and fisherfolk out of Mumbai, he said, “We will oppose this. It has to remain and be made into a fish market, and (should be) in the ownership of the BMC.”


Aaditya puppet for urban naxals: Shelar

Bharatiya Janata Party ( BJP ) Mumbai chief Ashish Shelar has called Uddhav Thackeray’s son and Shiv Sena (UBT) leader Aaditya Thackeray as a puppet for urban naxals after former’s comments on the Dharavi Redevelopment project and has also challenged him for a debate.

Ashish Shelar said that the project is a necessity and a priority project, adding that Uddhav Thackeray-led Shiv Sena and Congressleader Varsha Gaikwad are peddling lies.

Aaditya Thackeray seems to have become the spokesperson of urban Naxals. Without studying the subject (Dharavi) in detail, Aaditya Thackeray is speaking like an ignorant. I have seen that these people have been trying to set a narrative regarding Dharavi and the re-development work,” Ashish Shelar said.

He challenged Aaditya Thackeray and Varsha Gaikwad in a debate on the Dharavi Redevelopment Project.

“Uddhav ji and the people of his party – Aaditya Thackeray and Varsha Gaikwad have started this false narrative regarding Dharavi. I openly challenge Aaditya for a debate. I want to ask him that 70 per cent of the homes in the Dharavi Redevelopment Project will go to Marathi people, Muslims and Dalits. It is their rightful home, so why are they putting roadblocks by creating a false narrative?”

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