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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.

"Exposes deep failures of state's law and order": Chirag Paswan requests Bihar CM to take strictest action in Muzaffarpur rape-murder case



Patna (Bihar): Stressing that the Muzaffarpur rape-murder case exposes the "deep failure" of state's law and order system, Union Minister Chirag Paswan has written a letter to Bihar Chief Minister Nitish Kumar, calling for a strictest punishment for the accused involved in the incident.



In his letter, Union Minister Paswan also highlighted the negligence at the Patna Medical College and Hospital (PMCH), where, he said that the victim was kept waiting in the ambulance for six hours without any prior treatment.



"The horrific incident of gang rape and attempted brutal murder of a 9-year-old Dalit girl in the Kudni area of Muzaffarpur district on May 26th has shaken the entire state of Bihar. This heartbreaking event is not just the savage killing of an innocent life, but also exposes the deep failures of our state's law and order system, social consciousness, and public health system," Chirag Paswan said.



"The victim fought for her life for six days, but succumbed on June 1st at PMCH in Patna. Unfortunately, the child was made to suffer and wait for a continuous six hours in an ambulance to be admitted to the hospital," he said.



The Union Minister also asserted that the accused who gang-raped a minor child are as guilty as the doctors and administrative staff of PMCH, who, instead of providing the necessary treatment to save the child, "abandoned" her in the ambulance and wasted precious time in her treatment.



"This is not just negligence, but a crime against humanity," Chirag Paswan said.



Further, he said that representatives from his Lok Janshakti Party (Ram Vilas) have assured the victim of all possible justice.



"However, until strict and transparent action is taken against every culprit involved in this incident at both governance and administrative levels, justice will remain incomplete and unacceptable," he emphasised.



Chirag further demanded that all rapists involved in this heinous crime should be arrested promptly and given the harshest punishment, adding, "A high-level judicial inquiry should be conducted into the role of Hospital PMCH administration, doctors, and staff and criminal cases should be registered against the personnel who deliberately delayed treatment and showed inhumanity, ensuring their immediate suspension from service and strict departmental action."



The Union Minister also highlighted that this incident is not just the death of a child; it has become a symbol of the failure of Bihar's social system and the constitutional responsibility of the state.



"If the government remains silent on this matter, this silence will become the biggest crime," he said.



The accused had been arrested and sent to judicial custody, said Muzaffarpur SSP Sushil Kumar on Monday.



The Bihar Assembly elections are expected to be held in October and November this year, wherein the NDA, which consists of the BJP, JD(U), and LJP, will be once again looking forward to returning to power. In contrast, the INDIA Bloc will be giving competition to the incumbent Nitish Kumar government.

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