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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.

India, France seal ₹63,000-crore Rafale-M deal to boost Navy's air power



NEW DELHI: India and France have officially concluded the much-awaited ₹63,000-crore (USD 7.4 billion) agreement for 26 Rafale-Marine (M) fighter jets, aimed at significantly strengthening the Indian Navy’s maritime combat strength.


Although the deal was initially supposed to be signed during French Defence Minister Sébastien Lecornu’s visit to New Delhi, it was finalised remotely due to the postponement of his trip for personal reasons.


The signing took place in the presence of Indian Defence Secretary Rajesh Kumar Singh and French Ambassador Dr Thierry Mathou as a government-to-government (G2G) agreement, which had already been approved by the Cabinet Committee on Security (CCS) earlier this month.


Senior officials from the Navy, Ministry of Defence (MoD), French Navy, Dassault Aviation, and MBDA were also present during the signing ceremony.

In a G2G deal, defence procurement is made through direct negotiation between the governments of the importing and exporting countries.


The Rafale-M jets for the Indian Navy are designed to take off from ski-jump ramps on aircraft carriers. Both INS Vikrant and INS Vikramaditya use the STOBAR (Short Take-Off But Arrested Recovery) mechanism for their fighters.


The order includes 22 single-seat fighter jets and four twin-seat trainer aircraft. These carrier-capable Rafale-M jets will be stationed on INS Vikrant, the Navy’s first indigenously-built aircraft carrier.


The Navy is acquiring the Rafale-Ms as a short-term solution to replace its ageing fleet of Russian-made MiG-29K fighters, which have been facing operational issues. In the long term, the Navy plans to deploy the indigenous Twin Engine Deck-Based Fighter (TEDBF), which is still under development.

Designed for tough naval missions, Rafale-M jets have reinforced undercarriages and are compatible with the Navy’s STOBAR system. Their ability to operate far from the coastline will provide India with a significant strategic advantage in the region.

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