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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.

J-K: CM Omar Abdullah visits Kupwara hospital, meets shelling victims



Kupwara (Jammu and Kashmir): Jammu and Kashmir Chief Minister Omar Abdullah on Tuesday visited the Sub District Hospital in Kupwara to meet civilians who were injured in recent shelling by Pakistan along the Line of Control (LoC).



Heavy cross-border shelling by Pakistan after Operation Sindoor, conducted by the Indian Armed Forces in retaliation for the April 22 Pahalgam attack, had caused damage to homes and religious sites in Jammu and Kashmir's Kupwara, Uri, and Poonch. Despite this, locals vowed to stand with the Indian army.



Earlier in the day, CM Abdullah also inspected community bunkers in Tangdhar and visited the shelling-affected areas.



Earlier on Tuesday, after meeting residents affected by cross-border shelling in Kupwara, Chief Minister Omar Abdullah said that the government will compensate the people after the damage assessment is completed.



"By God's grace, we haven't lost any lives here, but of course, there is a loss of public property like houses, shops, and Madrasa. The District Collector is with us. They will do the damage assessment. The assessment will be completed by today or tomorrow, and then the government will compensate the people accordingly. The immunity bunkers were made, but we didn't need them for a long time. And, we will try to build individual bunkers around the border and LoC areas," Abdullah told the media.



The J-K Chief Minister visited the Pakistani shelling-affected areas in Tangdhar and said that the residents affected have shown "remarkable courage."



"Visited the shelling-affected areas of Tangdhar and met families who have shown remarkable courage amidst deep pain. Their resilience is inspiring. The government stands shoulder to shoulder with them, their pain will not go unnoticed, and every possible step will be taken to help them rebuild their lives with dignity and renewed hope," the Office of J-K CM posted on X.



After India and Pakistan came to an understanding of the cessation of hostilities, life slowly returned to normalcy in Jammu and Kashmir.

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