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.

Pahalgam attack: Pakistan shuts ports for Indian ships after New Delhi bans imports from Islamabad

  • PTI
  • May 4, 2025
  • 2 min read


ISLAMABAD: Pakistan has banned Indian-flagged ships from entering its ports with immediate effect after New Delhi imposed fresh punitive measures, including a ban on the import of goods and entry of Pakistani vessels into its ports, against Islamabad amid heightened tensions following the Pahalgam terror attack.


India on Saturday imposed a ban on the import of goods coming from or transiting through Pakistan and also the entry of Pakistani ships into its ports even as Prime Minister Narendra Modi said the country is committed to taking "firm and decisive" action against terrorists and their backers.


In retaliation, Pakistan late Saturday ordered that any Indian flag carriers would not be allowed to visit any Pakistani port and also barred Pakistani ships from docking at any Indian port.


The Ministry of Maritime Affairs, in a notification, said that it took the step of banning the Indian ships in the context of the current situation, keeping in mind maritime sovereignty, economic interests and national security.

Indian-flagged ships will not be allowed to reach any Pakistani port. Similarly, Pakistani-flagged ships will not visit any Indian port, the ministry said.

0:11

Ties between the two neighbouring countries plummeted following the April 22 Pahalgam terror attack that killed 26 people, mostly tourists.


In fresh punitive measures against Pakistan that came into effect immediately amid heightened Indo-Pak tensions in the wake of the deadly Pahalgam terror attack, India also suspended the exchange of mails and parcels from the neighbouring country via air and surface routes.


Besides banning the entry of Pakistani ships into Indian ports, India also barred Indian ships from visiting Pakistani ports, according to the Directorate General of Shipping (DGS).


The restrictions were put into place with immediate effect, officials said.

According to an Indian government order, the complete ban on imports of all goods from Pakistan was imposed on the grounds of national security and public policy.


Though the 200 per cent import duty imposed on Pakistani goods in 2019 after the Pulwama attack had effectively halted direct imports, the latest decision also prohibits the entry of Pakistani goods routed through third countries.


The fresh moves came a week-and-a-half after India announced a raft of punitive measures against Pakistan, including suspension of the Indus Waters Treaty, shutting down of the only operational land border crossing at Attari and downgrading of diplomatic ties following the terror attack.


The Pakistan Army, meanwhile, said in a statement that it has conducted a successful training launch of the Abdali Weapon System, a surface-to-surface missile with a range of 450 km, saying it was aimed at ensuring the operational readiness of troops and validating key technical parameters.


In New Delhi, people familiar with the matter said India considers the test launch of the ballistic missile a "blatant" act of "provocation".


As the hunt for the Pahalgam attackers intensified, Sri Lankan police searched a flight arriving in Colombo from Chennai after being tipped off that a suspect linked to the massacre could be on board, a police spokesperson said in the Sri Lankan capital.


Indian authorities have identified four terrorists - including two Pakistani nationals - behind the Pahalgam carnage.


A statement from the national carrier, SriLankan Airlines, said the aircraft was thoroughly inspected and subsequently cleared for further operations.

Comments

bottom of page