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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.

Drugs worth over Rs 55 crore seized in Manipur's Churachandpur

  • PTI
  • Jun 10, 2025
  • 2 min read

IMPHAL: A joint team of Directorate of Revenue Intelligence (DRI), Customs, Assam Rifles and Manipur Police have seized drugs and cash worth Rs 55.52 crore during an operation in Churachandpur district, a government statement said.


"A special operation codenamed 'Operation White Veil' was carried out in the bordering areas of Churachandpur district of Manipur on June 5-7 by a joint team of DRI, Customs, Assam Rifles and Manipur Police," it said on Monday.

In the early hours of June 6, two suspects in a vehicle at Behiang village bordering Myanmar were discreetly pursued, leading to a residential house at Thadou Veng in Singngat sub-division.


On searching the house, 219 soap cases containing heroin and eight packages and 8 small tin cans containing opium were recovered, along with two walkie-talkies and cash amounting to Rs 7,58,050.


While one person was apprehended from the house, two other persons, who escaped, were intercepted at Bualkot check gate, the statement said.


In a quick follow-up action, the residential house of one of the accused persons located at Behiang village was searched and two packages containing opium and cash amounting to Rs 28,05,000 were seized.


"The joint team seized 7,755.75 grams of heroin worth Rs 54.29 crore and 6,736 grams of opium worth Rs 87.57 lakh in the international grey drug market, along with cash of Rs 35.63 lakh," it said, adding two walkie-talkies and a vehicle were also seized and five persons arrested under the Narcotic Drugs and Psychotropic Substances Act, 1985.


Acting on further inputs received during the operation, two persons carrying improvised manpacks were intercepted at Zoukhonuam village near BP 46 on June 7. A search of the manpacks resulted in the recovery of 440 soap cases containing heroin, it said.


Preliminary investigation indicates that the seized contraband drugs were smuggled into the bordering areas of Churachandpur district from Myanmar through the porous forested Indo-Myanmar border.

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