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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.

Pakistan would be 'wiped out' if it continued anti-India operations: Anurag Thakur

  • PTI
  • May 5, 2025
  • 2 min read




Hamirpur (HP): Former Union minister and BJP leader Anurag Thakur on Monday lashed out at Pakistan for "fomenting troubles" on the borders and said that if Pakistan continued with such anti-India operations, it would be "wiped out".


The BJP leaders in Shimla submitted a memorandum to the deputy commissioner, urging him to immediately identify the Pakistanis living here both legally and illegally and ensure that they are sent back. The BJP workers and leaders also took out a protest march in the Lower Bazaar area of the town, raising anti-Pakistan slogans.


Himachal Pradesh BJP chief Rajiv Bindal said Pakistanis cannot be kept in the state and protests are being held at 17 places in the state. If the state government did not identify Pakistanis living in the state and ensure their repatriation, the BJP would launch a 'Jagaran Abhiyan' in the coming days, he said.


Addressing a district-level rally organised by the party at Gandhi Chowk here to protest against the terrorist attack on tourists at Pahalgam in Jammu and Kashmir, which claimed at least 26 lives, Thakur said that the Union Government has made it clear that a befitting reply would be given at the right time.


He said that if Pakistan continued with anti-India operations, it would be "wiped out" from the world polity.


In view of the brutal killings in Pahalgam, the Narendra Modi government has taken many diplomatic steps against Pakistan, including the decision to send back Pakistani citizens living in India officially or unofficially, Thakur, the sitting MP from Hamirpur Lok Sabha said.


This work is going on at a rapid pace in many states, but sadly the Congress government in Himachal Pradesh is not at all serious about finding and sending back the Pakistani citizens living in Himachal and therefore, the party decided to protest at every district on Monday, he said.


He said that on one hand, the Congress is extending its support to the government's decision to ban various facilities to Pakistan while on the other, its leaders are still making "irrelevant statements".


Protests were also held in Kullu, Una, Lahaul and Spiti and other places in the state.

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