top of page

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.

Operation Sindoor: When Honour Struck Back

With a codename steeped in grief and resilience, India’s retaliation fused firepower with moral clarity.

From the selection of targets and strategies to the symbolic and emotional significance of the codename, Operation Sindoor got it all right. It signalled to Pakistan that it can no longer harbour terror outfits and use them to engineer such brutal acts of terror in India with impunity. Operation Sindoor is hopefully just the tactical tip of our multidimensional strategic sword that will thrust deep into Pakistan to avenge decades of terrorist violence that has left thousands of widows in its wake. This is also the time for every patriotic Indian irrespective of religion, caste or creed to support our government to pursue their aim to put an end to such brutal inhumanity, and therefore, be prepared to pay the price to eradicate the scourge that has dogged our country for decades.


Strategic Rationale

Operation Sindoor was India’s calibrated response to the April 22 Pahalgam terror attack where 26 civilians were brutally murdered. Its purpose was to avenge this brutality, to dismantle the Pakistan-based terror infrastructure behind that massacre and to deter further incursions. The strikes were “focused, measured and non-escalatory,” attacking militants rather than conventional military forces. In strategic terms, this was a limited punitive strike – severe enough to punish the perpetrators, yet calibrated to avoid all-out war.


The planners identified nine terror camps - four in Pakistan’s Punjab and five in Pakistan-administered Kashmir. Notable targets included Jaish-e-Mohammed’s Bahawalpur training centre (Markaz Subhan Allah) and Lashkar-e-Taiba’s Muridke academy (Markaz Taiba), both jihadist training hubs. The strikes were launched simultaneously around 1 a.m. to maximize surprise. In keeping with the saying that revenge is a dish best served cold, nearly two weeks had passed since Pahalgam with no Pakistani action against those camps, effectively exhausting other options in the face of blatant Pakistani denial, before using force.


The operation leveraged India’s precision-strike arsenal with fighter jets carrying guided bombs and stand-off missiles. Official releases confirmed “missile strikes” on all targets and cited the use of “special precision munitions” to hit the camps accurately with minimal collateral damage.


Execution and Coordination: The strikes were executed with joint coordination. Fighter jets took off on schedule while naval and army assets supported the assault. All strike teams hit their objectives with precision, reflecting meticulous planning. Official statements noted the Army, Navy and Air Force acted in concert, and the Prime Minister was kept updated live through the night. The result was a clean execution where all designated sites were destroyed without Indian casualties reported.


Relatives of the Pahalgam victims praised the strikes as justice for their loved ones, and most political leaders backed the action. Internationally, leaders urged restraint and dialogue. The UAE’s foreign minister publicly called for de-escalation, and among others, Israel’s ambassador endorsed India’s right to self-defence. India’s response was widely viewed as measured and proportionate.


Pakistan immediately called the strikes an “act of war” and resorted to heavy shelling along the Line of Control. Pakistani media circulated claims of shooting down Indian fighter jets and hitting Indian bases, later debunked as misinformation. India’s military planners now anticipate tit-for-tat skirmishes or proxy attacks – but both sides know the nuclear threshold which may deter full-scale war. It is not judicious to further exam Pak retaliatory options in this open forum.


Symbolic Significance

Sindoor is the bright vermilion mark married Hindu women apply in their hair, symbolizing marriage. In Pahalgam, the attackers killed husbands in front of their wives, effectively “erasing the sindoor” of those women. By naming the mission Sindoor, India signalled it would avenge that injustice. The codename thus underscored the personal and cultural dimensions of India’s response to the cowardly brutal killing of husbands in front of their families and linking military action to the protection of our families and their honour.


In a utopian world, Pakistan would use this opportunity to stop fermenting terrorism and focus on building her economy by learning to live in peace with India. But that will require a regime change in Pakistan which, presently, is an unrealistic expectation.


(The author is a 1975 batch Armoured Corps officer who has commanded an Independent Armoured Brigade, an Infantry Division in Jammu and a Corps on the Chinese border. He also has had operational staff experience in J&K.)

Comments

bottom of page