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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.

Pahalgam victim’s daughter backs ‘Operation Sindoor’, calls it a fitting response to terror



Arathy, the daughter of N. Ramachandran—who was tragically killed in the recent terrorist attack in Pahalgam, Kashmir—has voiced firm support for the Indian Army’s retaliatory action, “Operation Sindoor.”


Speaking to reporters on Wednesday, she said she hoped the military operation would bring some comfort to the families shattered by the brutal violence.


Arathy’s father was fatally shot by terrorists on April 22 while the family was on vacation in Pahalgam. Reflecting on the trauma of witnessing the attack, she called the military action a strong and justified response to the cruelty they endured.


“There could not have been a more suitable title than ‘Operation Sindoor’ for this mission,” she said. “It’s a fitting answer to those who took away our fathers, brothers, and husbands right before our eyes.”


She also expressed deep gratitude to Prime Minister Narendra Modi, the Indian Army, and the central government.


“A big salute to everyone who planned and executed this operation. A big thank you to the government, the Prime Minister, and our soldiers who have been working tirelessly for this,” she added.


Arathy continued, “Let all Indians find some comfort through this mission. Let Operation Sindoor bring relief to all families who lost their loved ones, including Himanshi.”


Himanshi, whose husband was among the 26 victims of the Pahalgam attack, became the emotional symbol of the tragedy after a heartbreaking image of her beside her husband's lifeless body went viral.


In response to the massacre, the Indian armed forces launched missile strikes early Wednesday, hitting nine terrorist sites in Pakistan and Pakistan-occupied Kashmir. The targets included major bases of Jaish-e-Mohammed in Bahawalpur and Lashkar-e-Taiba in Muridke.


Carried out under the name ‘Operation Sindoor,’ the strikes marked a forceful response by India, two weeks after the deadly civilian killings in Pahalgam.

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