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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.

Pak foreign minister says chances of revival of conflict with India 'remote'

  • PTI
  • Jun 4, 2025
  • 3 min read


Islamabad: Foreign Minister Ishaq Dar on Wednesday said that the chance of revival of an armed conflict between Pakistan and India is remote but warned of a befitting response in case of any such development.


Dar's comment came while responding to a question during his press conference giving details of Prime Minister Shehbaz Sharif's recent visit to Turkiye, Iran, Azerbaijan and Tajikistan and to thank the respective leadership for support during the last month's conflict with India following the April 22 Pahalgam terror attack that killed 26 people.


When asked about a possible new round of fighting, Dar said that he could not predict the future but the chances of any such possibility are slim.


¿The ceasefire is holding and all steps regarding withdrawal of troops have been implemented by the two sides in letter and spirit. So there is no chance (of new war) in my opinion,¿ he said. ¿However, we will give a befitting reply if India resorts to armed conflict.¿


He said Pakistan was ready for dialogue with India, but not desperate for it, adding that Pakistan seeks a composite dialogue that includes terrorism as well as other issues, including Indus Waters Treaty (IWT).


He also claimed the IWT cannot be suspended.


Soon after the April 22 Pahalgam terror attack, India announced abeyance of the IWT among other punitive measures.


The IWT was signed in 1960 by the two countries to address the water dispute between them and to share the waters of the six main rivers of the Indus basin.


The minister reiterated the offer for a neutral probe into the Pahalgam incident, which led to the recent escalation between Pakistan and India.


Dar, who is also the Deputy Prime Minister, claimed while Pakistan's kinetic action has been appreciated, its diplomatic efforts have also earned international recognition.


The minister also appreciated the role played by the US, UK, Saudi Arabia, the UAE, Qatar, Iran and other countries during the conflict and bringing peace.


Dar announced that Prime Minister Sharif was set to visit Saudi Arabia during the next 24 hours to thank its leadership for its positive role during hostilities with India.


Speaking about Sharif's recent four-nation tour, Dar said the Prime Minister undertook a visit to Turkiye, Iran, Azerbaijan and Tajikistan to express Pakistan's gratitude for the solidarity expressed by these countries during the conflict with India.


He also praised the diplomatic outreach led by former foreign minister Bilawal Bhutto Zardari, which, he said, ¿has garnered international acclaim for its clarity.¿


Tensions between India and Pakistan escalated after the Pahalgam terror attack, with India carrying out precision strikes on terror infrastructure in Pakistan and Pakistan-occupied Kashmir in the early hours of May 7.


Pakistan attempted to attack Indian military bases on May 8, 9, and 10. The Indian side strongly responded to the Pakistani attempts by inflicting heavy damage to a number of key Pakistani military installations, including air bases, air defence systems, command and control centres and radar sites.


Foreign Secretary Vikram Misri on May 10 announced that India and Pakistan reached an understanding to stop all firings and military actions on land, air and sea, with immediate effect.


Starting May 22, India tasked seven multi-party delegations to visit 33 global capitals to reach out to the international community on Pakistan's designs and India's response to terror after the Pahalgam terror attack.


Pakistan too announced last month to send a team of experts to foreign capitals to inform the world about the four-day conflict with India and also highlight its point of view regarding the conflict.

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