top of page

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 prepared to give "befitting reply" to Pakistan: Sachin Pilot on Pahalgam attack



Jodhpur: Congress leader Sachin Pilot on Sunday said that the recent terrorist attack on civilians in Pahalgam was an attack on the nation, and that the country is fully prepared to give a "befitting reply" to Pakistan.



Speaking to ANI, Sachin Pilot said, "The terrorist attack incident on innocent, unarmed civilians in Pahalgam is not just a terrorist attack -- it is an attack on the country. India is ready to give a befitting reply to Pakistan. Congress leaders Rahul Gandhi, Mallikarjun Kharge have all said this... Not just the opposition, but 140 crore people in the country are united to eradicate terrorism."



"Whatever steps the Centre needs to take, it should take without hesitation. When such attacks are carried out, a strong and effective reply must follow," he said.



Pilot also accused Pakistan of attempting to destabilise India and sow internal divisions.



"Pakistan is trying to divide our country and weaken our unity. We must respond in a way that prevents such incidents from ever happening again," he added.



Meanwhile, amid escalating tensions between India and Pakistan, Air Chief Marshal Amar Preet Singh met with Prime Minister Narendra Modi on Sunday, sources told ANI.



This comes after the Navy Chief Admiral Dinesh K Tripathi met with PM Modi on Saturday at his Lok Kalyan Marg residence in the national capital.



The meeting between the Air Force Chief and Prime Minister Modi took place days after Prime Minister Modi chaired a meeting, which was attended by Defence Minister Rajnath Singh, Chief of Defence Staff Gen Anil Chauhan, and three service chiefs. National Security Advisor Ajit Doval was also present at the meeting.



A meeting of the Cabinet Committee on Security (CCS) was held a day after the terror attack on tourists in Pahalgam, in which 26 people were killed.



The government has affirmed India's national resolve to deal a crushing blow to terrorism. It has been said that the terrorists responsible for the attack and the conspirators behind it will face severe punishment.



The government has given armed forces complete operational freedom to decide on the mode, targets, and timing of India's response.



The government had convened an all-party meeting after the Pahalgam terror attack.



Opposition parties have expressed their full support for any action taken by the government against the perpetrators of the terror attack.



In the briefing to the CCS, the cross-border linkages of the terrorist attack were brought out.



It was noted that this attack came in the wake of the successful holding of elections in Jammu and Kashmir and its steady progress towards economic growth and development.



The government has announced a series of measures, including putting the Indus Water Treaty in abeyance, to send a strong message to Pakistan for its support of cross-border terrorism

Comments

bottom of page