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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.

Indian Armed Forces displayed valour and bravery, scripted new history: Rajnath Singh lauds Operation Sindoor



New Delhi: Defence Minister Rajnath Singh said on Wednesday that the Indian Armed Forces displayed their valour and bravery in Operation Sindoor, scripting a new history, and took action against terrorist infrastructure in Pakistan and POJK with "precision, alertness and sensitivity".



Speaking at an event for the inauguration of 50 Border Roads Organisation infrastructure projects across six states and two UTs, Rajnath Singh said that the armed forces showed sensitivity in ensuring that the civilian population is not affected during their action.



He also expressed gratitude to Prime Minister Narendra Modi for his full support to the armed forces.



India's precision strikes on terrorist infrastructure came in response to the Pahalgam terror attack in which 26 people were killed.



"You know that today, under the guidance of PM Narendra Modi, our Indian armed forces have made us all proud...Last night, our Indian armed forces displayed their valour and bravery, and scripted a new history. Indian armed forces took action with precision, alertness and sensitiveness. The targets we decided where accurately demolished with precision.. Our armed forces also showed sensitivity in ensuring that the civilian population is not affected at all," Rajnath Singh said.



"In a way, we can say that Indian jawans showed precision, alertness and humanity. On behalf of the entire country, I congratulate the jawans and officers," he added.



Earlier in the day, at a joint briefing on Operation Sindoor, in which nine terrorist camps were targeted by the Indian Armed Forces with precision strikes, Foreign Secretay Vikram Misri said the terror attack in Pahalgam was marked with extreme barbarity, with the victims mostly killed with head shots at close range and in front of their family.



"The family members were deliberately traumatised through the manner of killing, accompanied by the exhortation that they should take back the message. The attack was clearly driven by the objective of undermining normalcy returning to Kashmir," he said.



Misri said that Indian intelligence agencies had been monitoring terrorist activities and raised concerns regarding more terrorist attacks in India.



"Our intelligence indicated that further attacks against India are impending. Thus, compulsion, both to deter and prevent and hence earlier this morning, India exercised its right to respond to deter such more cross-border terrorism... Our actions were measured and non-escalatory, proportionate and responsible. They focused on dismantling terrorists' infrastructure," he said.



Wing Commander Vyomika Singh said that a total of nine terror sites were targeted and successfully destroyed. She asserted that the locations were selected so that there was no damage to civilians and their infrastructures.



"Operation Sindoor was launched by the Indian Armed Forces to deliver justice to the victims of the Pahalgam terror attack and their families. Nine terrorist camps were targeted and successfully destroyed... The locations were so selected to avoid damage to civilian infrastructures and loss of any civilian lives, she said.



Col Sofiya Qureshi showed some videos of the strikes destroying terror camps.



The Indian Armed Forces conducted 'Operation Sindoor' early Wednesday.



Twenty-six people were killed in the Pahalgam terror attack. The government had said that the perpetrators will face severe punishment

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