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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.

Karnataka Congress blames Centre’s intelligence lapse in Kashmir terror attack



BENGALURU: Following the recent terror attack in Kashmir, AICC president Mallikarjun Kharge on Wednesday urged leaders to avoid politicizing the tragedy. However, senior Congress figures in Karnataka, including Chief Minister Siddaramaiah, Home Minister G Parameshwara, and IT-BT Minister Priyank Kharge, pointed to intelligence lapses by central agencies as a cause of concern.


Home Minister Parameshwara said the intelligence failure should be taken seriously by the Centre. “India has a strong military intelligence system that has performed well in the past. So how did this happen now? How did terrorists infiltrate the area? These are serious questions,” he said. He also highlighted that the attackers targeted Hindus, which he called deeply concerning. He urged the Centre to take swift action against the group that has claimed responsibility.


Parameshwara also suggested the need to investigate whether insiders, including members of the Army, could have assisted the attackers. “Was the military presence reduced because there was a period of calm? I’m not blaming the BJP or the government, but in moments like these, politics should be put aside,” he said.


Chief Minister Siddaramaiah condemned the attack and acknowledged the failure of intelligence. “This incident should not have happened. There was a clear lapse in intelligence,” he stated.


Priyank Kharge took a sharper tone, criticizing Union Home Minister Amit Shah. “When the so-called Chanakya of Indian politics is more focused on toppling governments, breaking up parties, and interfering in elections, incidents like this are bound to happen,” he remarked.


He further said that if Amit Shah had shown the same urgency in tackling external threats as he does in monitoring opposition leaders or promoting his son Jay Shah’s elevation to ICC president, perhaps China wouldn’t be occupying Indian territory and this tragedy might have been avoided.


“This government will likely downplay the incident, underreport casualties, and try to spark communal tension or blame the Congress again. Does the Prime Minister have the courage to demand Shah’s resignation? Will the RSS limit its aggression only to Vijayadashami speeches and its stance against minorities and Dalits? Do they have the guts to hold the PM accountable?” Priyank questioned.

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