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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.

Life returning to normal in border villages of Ferozepur

  • PTI
  • May 15, 2025
  • 2 min read


Ferozepur: Life in the villages situated along the India-Pakistan border in this Punjab district is returning to normal, with the villagers coming back to their homes that they had left behind for safer places following tensions between India and Pakistan.


After the two neighbouring countries arrived at an agreement on May 10 to halt military actions, the residents of the border villages started coming back.


Malkeet Singh of Jallo Ke village, situated at a stone's throw from the International Border, said, "People are coming back and it feels like life is returning to normal, step by step."


Reflecting on the tense days of the conflict, he said, "The first few days were terrifying. We heard strange sounds at night and the fear of the unknown kept us all awake. But slowly, things are beginning to settle down."


Several residents of the border villages, including Gatti Rajoke, Tendiwala, Kalluwala, Nayi Gatti Rajoke, Jallo and Rahime Ke Gatti, had left for safer places when the tensions between the two countries escalated.


Tara Singh (40) from Nayi Gatti Rajoke talked about the painful reality of leaving everything behind.


"After the tensions soared, most of the people left. It was not easy. Some spent thousands of rupees to bring their belongings to safety," he said.


For Gurjeet Kaur (52), the decision to stay back in the village was not easy, but it was one that she does not regret.


"No one asked me to leave and I chose to stay. Some people went to stay with their relatives, but we had faith in the soldiers," she said.


Sixteen-year-old Jaswinder Singh from Tendiwala said his family did not leave the village as they knew that they were safe because of the security forces.


"I feel proud of them for protecting us," he said.


A level of normalcy has returned to the border areas of Punjab, with markets teeming with people and schools reopening.


India and Pakistan arrived at the agreement to halt military actions after four days of intense cross-border drone and missile strikes.

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