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.

Pakistan violates ceasefire for 8th day as India cracks down after Pahalgam attack



Pakistan Army resorted to unprovoked small arms firing on Indian positions along the Line of Control (LoC) in Jammu and Kashmir for the eighth consecutive day on Friday.


Defence Ministry statement on Friday said, "During the night of May 1 and May 2, Pakistan Army posts resorted to unprovoked small arms firing from posts across the LoC opposite Kupwara, Baramulla, Poonch, Naushera, and Akhnoor areas of the Union Territory of Jammu and Kashmir."


"Indian Army troops responded in a calibrated and proportionate manner."


In addition to the LoC, Pakistan Army also violated ceasefire on the International Border in Pargwal sector of Jammu on Thursday.


Tensions have mounted between the two countries after Lashkar-e-Toiba (LeT) terrorists sponsored and aided by Pakistan killed 26 innocent civilians, including 25 tourists and a local, on April 22 in Baisaran meadow of Pahalgam.


The entire country was outraged by the cowardly act of terrorists as Prime Minister Narendra Modi said in his first reaction to Pahalgam killings that the terrorists, their handlers and backers would be chased and hunted down to the ends of the earth.


The Prime Minister has given a free hand to the Armed forces of the country to avenge the Pahalgam carnage by deciding on the timing, targets and the magnitude of response to hunt down the terrorists.


Defence Minister Rajnath Singh had a 40-minute-long meeting with the Prime Minister on Monday.


he Defence Minister met the PM after he received a detailed briefing by the Chief of Defence Staff (CDS) on the preparedness of the country's armed forces to meet any eventuality.


Jammu and Kashmir Lieutenant Governor (L-G) Manoj Sinha had a security review meeting with Army Chief General Upendra Dwivedi in Srinagar a few days ago.


The L-G asked the Army to use whatever force is required to hunt down the perpetrators of the Pahalgam terror attack.


Meanwhile, to send a powerful message to terrorists, their overground workers and sympathisers, security forces continue demolition of the houses of terrorists.


Last Friday, two houses belonging to Adil Hussain Thokar and Asif Sheikh were demolished in the Tral and Bijbehara areas.


Both these terrorists were part of the LeT terrorist group involved in the Pahalgam killings.


Security forces have so far demolished the houses of 10 terrorists, who are reportedly still active in the Kashmir Valley.


On Monday, the Jammu and Kashmir Assembly unanimously condemned the dastardly terrorist attack and passed a resolution on this.

Comments

bottom of page