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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.

Opposition MPs demand special session of Parliament on Pahalgam terror attack

  • PTI
  • Apr 28, 2025
  • 2 min read


NEW DELHI: More opposition MPs on Monday joined the call for convening a special session of Parliament in the wake of the Pahalgam terror attack.


Rashtriya Janata Dal (RJD) MP Manoj Jha wrote to Prime Minister Narendra Modi, while Communist Party of India (CPI) MP P Sandosh Kumar sent a letter to Parliamentary Affairs Minister Kiren Rijiju, urging them to convene a special session of Parliament to express the will of the nation and send a message of unity.


Independent Rajya Sabha MP Kapil Sibal had on Sunday requested political parties to urge the government to convene a special session of Parliament as early as possible in May.


The former Union minister has called for passing a resolution condemning the Pahalgam terror attack to convey the message to the world that the country is united.


Jha, in his letter addressed to the prime minister, said the Parliament of India stands as the cornerstone of the republic and the highest forum for democratic expression.


"At this time of grief and testing, the Parliament must come together to pay heartfelt homage to the victims of the Pahalgam attack, honour their memory, and reaffirm our shared commitment to the ideals of unity, justice and peace," Jha said.


He said it is essential that the government takes the nation and its elected representatives into full confidence, adding that a shared national response, built through consultation and consensus, is the surest path to preserving unity and safeguarding our nation.


"It is in this spirit that I respectfully urge you to convene a Special Session of Parliament, dedicated exclusively to an open and principled discussion on the Pahalgam attack and its broader implications for the security, well-being and aspirations of the people of India," Jha said.


Kumar, a CPI MP from Rajya Sabha, in his letter addressed to Rijiju, said the special session would allow members across party lines to come together to mourn the loss and express the will of the nation.


He said the attack did not only cause immense sorrow to the victims' kin but also shook the "collective conscience of our nation."


"In these difficult times, it is imperative that our Parliament "the supreme voice of the people" comes together in solidarity to express our profound grief, pay homage to the victims and reiterate our nation's unyielding resolve against terrorism," he said.


"In view of the magnitude of this tragedy, I urge you to consider convening a Special Session of Parliament at the earliest.


Such a session would allow Members across party lines to come together in one voice to mourn the loss, to express the will of the nation and to send a clear and strong message that India remains united, resilient and resolute against those who seek to harm us through acts of terror," he said.


Kumar said Parliament should rise above political divides to embody the spirit and aspirations of the people.


"At this moment of national mourning, a collective expression of solidarity from the highest forum of democracy would be both timely and necessary," he said.


On April 22, terrorists in Pahalgam gunned down 26 people, mostly tourists, in what is the deadliest attack in the Valley since the Pulwama strike in 2019.

An all-party meeting was called by the government on April 24 after the Pahalgam attack.

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