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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.

Mahayuti shall return to power with not much changes in the power equation: Shinde

Updated: Nov 15, 2024

Chief Minister Eknath Shinde appears very confident and is absolutely sure of returning to power after the assembly elections next week. Excerpts of the conversation with him ahead of the crucial polls that the whole nation is watching.


Eknath Shinde

Q. How do you assess the 2024 Assembly elections? What is different from the other Vidhan Sabha elections?

A. Assembly elections are like exams for us. We go to people with our report cards and they assess us based on our performance. All the parties including the big political organizations and even those in power have to follow this procedure. This time, the volume is big. Apart from Shiv Sena there are at least six other political parties and some alliances are contesting the elections. There are several independent candidates also who want to try their luck. That makes a huge lot and that has added spice to the elections. Everybody is waiting to watch the outcome. Elections are not new to me. I have been doing both, to contest and win myself as well as help other win. I have been doing this for a long time. But, yes this is the first time that I am contesting and facing the elections with an added responsibility of the Shiv Sena party chief. In that sense this election is a bit different for me that those I have faced in the past.


Q. The elections are being fought by Mahayuti under your leadership. What are the issues that you are taking before the people?

A. We have been pursuing the development agenda. We want to see a sustainable, quality and all-round development that would bring happiness into the lives of the people. Especially, the yet under-developed areas of the state, small hamlets and even the cities need financial strengthening. Employment and self-employment needs a boost. World class infrastructure and good educational institutions are required. Schemes that would make the farmers self-sufficient and the agriculture independent need to be promoted. Women’s empowerment is yet to be complete. There are several things that we want to accomplish. We are going to people with what we have done and we are sharing our vision with them as to what we want to accomplish.


Q. There was lot of criticism of the Ladki Bahin scheme by the MVA. They said that it would be a strain on exchequer and it will be shut after the elections. Now they have made a similar promise.

A. That is their double-speak. They are confused themselves. They know very well that the scheme is sustainable. But, don’t want to accept it. Yet, when they see the people enthusiastic about the scheme, they are not able to resist themselves from announcing something similar. Basically the scheme is for the benefit of all the downtrodden sections of the deprived classes. There was no need to politicise the issue. But, the opposition lost their cool when they saw the people’s support to the scheme. Initially they tried to create confusion saying that there would be a strain on exchequer. But, when 2.40 crore sisters got the five instalments deposited to their bank accounts, they realized the potential of the scheme and they made a U-turn. This in itself underlines the great success of the scheme. They themselves have made it clear that they opposed the scheme initially out of political insecurity.

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