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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.

Ghibli vs Generative AI: A Battle for the Soul of Art

As Studio Ghibli’s iconic style gets swept into the AI age, a storm brews over copyright, consent, and the soul of art.

Ghibli-inspired art has taken the internet by storm in recent weeks, especially the social media, where netizens are posting pictures converted into Ghibli Style images by Artificial Intelligence (AI). While the people seem to thoroughly enjoy the new feature of OpenAI, it has opened the doors for several debates, especially in the legal fraternity. It raises several questions regarding privacy, ethical concerns and most importantly about copyright infringement. The founder of Studio Ghibli, Artist Hayao Miyazaki himself expressed his displeasure over the Ghibli styles images of people doing circles on social media, calling the art generated by AI “an insult to life itself”.


The issue began with OpenAI launching GPT-4o which enabled users to upload pictures and turn those into unique high-quality images resembling distinct artistic styles of Studio Ghibli. While this brings out warm nostalgia and excitement, it has also brought to the forefront significant concerns about the legal limits of AI-generated art.


Studio Ghibli has a very unique style of art and an extraordinary way of connecting with people. It’s not just visually stunning, but also deeply emotional. With its detailed hand-drawn animation, it brings both magical moments and everyday life to the screen with equal care and attention. The soft, warm colours add a sense of comfort and nostalgia, making the scenes feel timeless. What truly makes Ghibli special is how effortlessly it blends fantasy into ordinary life. It’s this warmth and authenticity that makes the art feel not just beautiful, but truly human. The animations are carried out by skilled animators and therefore the replication of this style of art has become controversial in the recent times.


A key question is whether Studio Ghibli’s art style can be protected under copyright law. International frameworks like the Berne Convention and TRIPS safeguard only the expression of ideas, not the ideas themselves. Artistic styles, such as Ghibli’s distinctive aesthetics, are typically deemed unprotectable ideas; only specific characters and images qualify for copyright. Granting exclusive rights over a visual style risks stifling creative freedom. OpenAI argues that it uses only publicly available ideas to render images in a Ghibli-like manner. Yet courts apply various tests such as ‘substantial similarity’ and ‘look and feel’ to assess whether imitation crosses into infringement.


Courts often use the ‘look and feel’ and ‘substantial similarity’ tests to determine copyright infringement. The former asks whether an average observer finds the overall impression of two works strikingly similar, while the latter examines whether protectable elements like unique expression or structure have been unfairly echoed in the new work.


Though OpenAI’s outputs may resemble Studio Ghibli’s aesthetic, legal protection applies only to concrete, original expressions, not abstract artistic styles. Courts typically filter out unprotectable elements before applying these tests, making it difficult for Studio Ghibli to argue that its art style, however distinctive, qualifies as a protectable expression rather than a mere idea.


A derivative work, generally is one that is based on, adapted from, or recast of an existing copyrighted work. Under the Indian law, it is considered as an adaptation which is also a subject matter of copyright protection. Therefore, if an AI creates an image that looks a lot like something from Studio Ghibli and especially if that image was generated using copyrighted material as part of its training data without permission, it could be considered an unauthorized derivative work amounting to copyright infringement. Interestingly, if AI is simply inspired by a general artistic style, without copying specific characters, scenes, or unique design elements, it might not qualify as infringement. The debate again boils down to the question of whether the ‘art form’ in itself could be considered as an expression or a mere idea, which will determine its copyrightability.


A critical point of contention is whether using copyrighted material to train AI qualifies as fair use. Proponents argue that AI transforms ideas into new expressions based on user prompts, akin to how original works build on public knowledge. Critics, however, contend that even storing such material for training infringes copyright, as this right rests solely with the creator. In India, the stricter doctrine of ‘fair dealing’ further complicates the issue, raising doubts over whether AI training practices can be legally justified under existing frameworks.

As users upload personal photos to generate Ghibli-style images via AI platforms, concerns have mounted over whether such data is quietly repurposed for model training, raising red flags over privacy and potential misuse. If reused, AI could inadvertently replicate individuals’ likenesses in new artworks, blurring the line between consent and exploitation. Studio Ghibli’s co-founder, Hayao Miyazaki, once called AI animation “an insult to life itself” - a sentiment echoed by traditional artists who fear that hand-drawn craft, rich in emotion and cultural depth, is being undermined. Though not strictly a question of intellectual property, the ethical implications are profound.


The rise of AI-generated art in the style of Studio Ghibli has ignited complex debates around originality, authorship, and copyright. While such technology challenges existing frameworks, it also forces a re-evaluation of transformation, fair use and inspiration in the digital age. Striking a balance between protecting artists and fostering innovation is crucial. To safeguard creativity and progress, clear legal and ethical guidelines must follow to ensure that the future of art remains rich, respectful and imaginative.


(Dr. Sajid Sheikh is Assistant Professor (Law) and Ms. K. Ankita Rao is Research Assistant, DPIIT IPR Chair. Both are at the Maharashtra National Law University, Mumbai. Views personal.)

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