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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.

NIA searches several locations in 3 states in 2024 terrorist Arsh Dalla linked Neemrana hotel attack case



New Delhi [India], May 5 (ANI): The National Investigation Agency (NIA) conducted extensive searches at 10 locations in Rajasthan, Haryana and Delhi to probe the conspiracy behind the 2024 Neemrana hotel firing attack linked with Canada-based Khalistani terrorist Arsh Dalla, the agency stated on Monday.



The NIA conducted the searches on May 3. The attack, in which 35 shots were fired on September 8 last year, all around the premises of Hotel Highway King, was aimed at terrorising and threatening people.



According to NIA, the two attackers were subsequently identified as members of the Bambiah gang, having connections with Dalla's terrorist-gangster network.



They had used prohibited weapons and also threatened the hotel's owner and manager for extortion money. The manager had also earlier received several threat calls from international numbers, the NIA stated.



NIA, which had taken over the case in December, seized several electronic devices and other incriminating materials during the searches conducted at the premises of accused / suspects engaged in promoting violent criminal activities.



These accused/suspects had been involved in providing financial support, and in carrying out acts of violence and terror at the behest of designated individual terrorist Arsh Dalla and his associate Dinesh Gandhi, as per NIA investigations.Dalla's associates have been resorting to extortion through such terror and violent acts to raise funds for banned Khalistani terrorist outfits, NIA investigations have revealed.



"Businessmen and other targets were identified by these gangsters and their aides, who would threaten and coerce the targets into paying off huge sums," the NIA stated. The investigations in the case RC 01/2024/NIA/JPR are continuing as part of NIA's all-out efforts to identify and dismantle terrorist and gangster syndicates active in the country.

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