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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.

'It will be our jugular vein': Pakistan General Asif Munir's comment on Kashmir, days before Pahalgam terrorist attack



While addressing the Overseas Pakistanis Convention in Islamabad on April 16, General Munir spoke about Kashmir, declaring, "Our stance is absolutely clear, it was our jugular vein, it will be our jugular vein, we will not forget it. We will not leave our Kashmiri brothers in their heroic struggle."


Speaking to Pakistanis living abroad, he described them as the country's ambassadors and urged them to remember that they come from a "superior ideology and culture".


"You should definitely tell Pakistan's story to your children. Our forefathers thought that we were different from the Hindus in every aspect of life. Our religions, our customs, traditions, thoughts and ambitions are different. That was the foundation of the two-nation theory that was laid," he said.


He also defended the two-nation theory, which served as the ideological basis for the 1947 Partition.


Pahalgam Terror Attack On Tuesday afternoon, terrorists targeted a popular tourist site in Baisaran Valley, Pahalgam—a scenic meadow often called "mini Switzerland"—killing at least 26 people, mostly tourists, and injuring around 17 others, according to police. Among the dead were 25 Indian nationals and one from Nepal.

Survivors captured disturbing footage showing bodies on the meadow and people crying out for help.


It was the deadliest attack on civilians in India since the 2008 Mumbai terror strikes that killed over 160 people.


Prime Minister Narendra Modi, who returned early from his visit to Saudi Arabia, said those behind "this heinous act will be brought to justice and will not be spared".


Terror Group Claims Responsibility

The Resistance Front, a proxy of the banned Pakistan-based Lashkar-e-Taiba (LeT), claimed responsibility via a social media post. The group cited frustration over what it called the resettlement of more than 85,000 "outsiders" in the region, accusing the move of triggering a "demographic change".


However, the government is yet to release an official statement confirming the group's involvement in the attack.

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