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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.

Eleven Maoists lay down arms in Gondia

More than 100 Red rebels surrender in central India

Naxals arrive to surrender their weapons before police in Gondia district, on Friday. Pic: PTI
Naxals arrive to surrender their weapons before police in Gondia district, on Friday. Pic: PTI

Gondia (Maharashtra): As the Centre’s deadline to crush Maoism by March 2026 approaches, the Red brigade suffered another setback with 11 Maoists laying down arms in Gondia district.

 

This has taken the count of surrenders to over 100 during this week in central India - with the CPI (Maoist) networks seen to be crumbling in Maharashtra and Chhattisgarh – and the security forces gaining an upper hand.

 

According to Gadchiroli Range Deputy IGP Ankit Goyal, among the 11 is one Vinod Sayyana, 40, a senior Maoist cadre from Karimnagar in Telangana, who carried a bounty of Rs 25 lakhs. He gave himself up with an AK-47 assault rifle.

 

The entire surrendered group belonged to the dreaded Darekasa Dalam, which is the most active unit in the MMC zone of Maharashtra-Madhya Pradesh-Chhattisgarh.

 

“With the latest surrender, a majority of the insurgents, who carried a total reward of Rs 89 Lakhs, have now given up violence and are prepared to join the national mainstream. It is a decisive blow dealt to the outfit’s operational strength on the ground,” Goyal told the media on Friday.

 

The others, including at least four women rebels, are identified as: Rani alias Rame Yesu Narote (30), Sheila Chamru Madavi (40) and Ritu Bhima Dodi (20), Shevanti Raisingh Pandre (32), Pandu Pusu Wadde (35), Santu alias Tijauram Dharamsahay Poretti (35), Kashiram Rajya Bantula (62), Nakke Suklu Kara (55), Sannu Mudiyam (27), Sadu Pulai Sotti (30).

 

According to officials, the last week of November alone has witnessed over 100 Maoists - carrying cumulative rewards exceeding Rs 1.50 crore - renouncing violence and returning to the mainstream across Maharashtra and Chhattisgarh, historically regarded as the epi-centre of Maoist insurgency, with spillover in other states.

 

Chhattisgarh witnesses surrenders

Several hardcore Maoists also shunned violence in Chhattisgarh, among them was Saroj alias Malku Sodhi, a divisional committee member with an Rs 8-lakh reward, and a group of area committee members Bhupesh alias Sanak Ram Furami, Prakash, Kamlesh alias Jhitru Yadav, Janni alias Raymati Salam, Santosh, and Ramsheela alias Bukli Salam - each with bounties of Rs 5 lakh.

 

The most symbolic surrender was of Chaitu alias Shyam Dada, 63, a member of the Dandakaranya Special Zonal Committee (DKSZC) – the local Maoists’ highest decision-making. His return to normal life at a senior age underscores the disenchantment with Maoist ideology, fatigue, sustained security operations and intensified outreach campaigns by the officialdom, and the looming deadline on all outlaws still left in the jungles.

 

 


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