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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.

Broken Consensus: Pahalgam and the Betrayal Within

The muted response of minority community leaders and the silence of India’s secular elite after the horrific massacre in Kashmir is both a tragedy and a betrayal.

Twenty-six more innocents lie dead in the meadows of Kashmir. Once again, India is asked to mourn. But the Pahalgam massacre of April 22 demands a stern reckoning and fierce introspection.


The chilling terror strike at Baisaran was carried out by ‘The Resistance Front’ (TRF) - a proxy of the banned Pakistan-based terror group Lashkar-e-Taiba (LeT), who opened indiscriminate fire on tourists after confirming they were Hindu. This is no sudden eruption of violence. It is the inevitable outcome of a long, slow rot: a national culture that refuses to name Islamist terror as the ideological force it is, and a political elite that has indulged, justified, and normalized sedition in the name of ‘progressive’ secularism.


It lies in the wilful silence of the Muslim community leadership in India, and of the secular intelligentsia that claims to represent national conscience.


While politicians in Kashmir across the spectrum have condemned it (and why wouldn’t they?), no prominent Islamic scholar, cleric, or leader has issued an explicit, unambiguous condemnation of the Pahalgam attack as an act of Islamist terrorism.


Instead, the public is served vague appeals for peace, with the inevitable warnings of ‘secular’ intellectuals against ‘communalising’ the issue. This moral evasiveness is not simply shameful but dangerous.


Because until India’s Muslim leaders confront the ideology that festers within parts of their community, until they stop pretending that Islamist terrorism is a ‘reaction’ rather than a pathology, the carnage will continue regardless of the abrogation of Article 370.


Terrorism is not created in a vacuum. It feeds on the enabling environment provided by intellectual cowardice, selective outrage, and political expediency. It thrives when universities glorify secession, when journalists sanitise jihadist violence as ‘resistance’ and when political parties, like the Jammu and Kashmir National Conference (JKNC) and the Peoples Democratic Party (PDP) oscillate between condemning terror and appeasing its ideological architects.


Today, these very parties have called for a Kashmir bandh in mourning of the Pahalgam slain. But these are the very parties that, until recently, have spent decades appeasing separatists, normalizing Pakistan’s propaganda and treating the ethnic cleansing of Kashmiri Pandits as a mere footnote in history. Their sudden tears ring hollow.


The challenge before India is therefore not merely military. It is moral. If Pahalgam is not to be repeated, India must demand, and not politely request, that its Muslim leaders condemn Islamist terrorism with clarity, consistency and courage. We have seen Muslim protest marches in states like West Bengal in solidarity with Rohingya refugees and against Israel’s strikes in Gaza. Where is that solidarity today with the slain Hindu tourists of Pahalgam?


Nowhere is this malaise clearer than in India’s universities, where slogans like ‘Azad Kashmir’ and ‘Free Palestine’ continue to be proudly emblazoned across walls and banners.


Besides JNU, Jadavpur University in Kolkata, one of India’s most celebrated institutions, is a prime instance of this where such slogans had landed the varsity in deep controversy recently. In 2016, posters had again appeared inside the campus openly supporting executed terrorists Afzal Guru and Yakub Memon. Guru was convicted for his role in the 2001 attack on the Indian Parliament. Memon was hanged for helping orchestrate the 1993 Bombay bombings, which killed over 250 civilians. Even then, alongside the posters were hastily scrawled slogans: ‘Azad Kashmir,’ ‘Azad Nagaland,’ ‘Azad Manipur’ - a laundry list of demands for India’s Balkanisation, promoted by students who see treason not as shameful but fashionable.


Such displays are frequently defended by many faculty members, student leaders and a section of ‘progressive’ journalists as exercises in ‘freedom of expression.’ When nationalists protest these outrages, they are condemned as ‘intolerant’ and ‘fascist.’ When citizens demand accountability, they are told they are ‘stifling dissent.’


Thus, a generation of young Indians has been taught that sympathy for Islamist terrorists is not a betrayal of their country but a badge of enlightenment. The consequences of this cognitive dissonance are now being paid in blood - in Pahalgam, in Pulwama, in Uri, and before that, in Mumbai.


The NGO sector, manifested in outfits like the Human Rights Law Network (HRLN) and the Popular Front of India (PFI), have either directly or tacitly supported separatist causes in the cloak of ‘human rights.’ Meanwhile, these same NGOs are conspicuously silent when the victims are Hindus massacred by Islamist terrorists.


India faces a stark choice. It can continue to cling to the Nehruvian delusion that makes secularism equivalent to appeasement, or keep saying that ‘nationalism’ is a dirty word, and that Islamist terror must be excused lest it offend minority sentiments. Or it can confront the truth that a poisonous ideology is festering within parts of its society, nurtured by false grievances, shielded by complicit elites and fed by an academia that treats treason as chic rebellion.


Pahalgam must be a turning point. Muslim community leaders must be made to condemn Islamist terror unequivocally, without qualifications, excuses or equivocations.


Universities must be reformed to stamp out the glorification of terrorists. Intellectuals who weep for Gaza but fall silent over Indian dead must be called out for their selective morality.


Pahalgam has conclusively demonstrated that the consensus that once bound India in the form of a belief in a shared future and a common destiny lies broken. If it is not rebuilt on the firm foundation of truth and courage, Pahalgam will not be the last massacre. It will only be the latest.

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