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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.

Pakistani link found in Pahalgam attack; digital trail leads to Muzaffarabad, Karachi safehouses



Indian intelligence agencies have traced the digital footprints of the Pahalgam attackers to safehouses in Muzaffarabad and Karachi, confirming Pakistan’s involvement in the attack and pointing to the use of a remote control-room, similar to the one used in the 26/11 Mumbai attacks, according to senior officials directly involved in the investigation.


On Tuesday, at least 26 Indian tourists, all men and mostly Hindu, were targeted by terrorists in what is being described as one of the valley's worst attacks in recent years.


Preliminary forensic analysis and survivor testimonies indicate that the five terrorists involved were heavily armed with automatic weapons, including AK rifles, and used advanced communication devices. Some of them were also dressed in military-style uniforms.


“Our intelligence intercepts suggest a direct link with operatives based in Pakistan. We have traced the digital footprint to some safehouses in Muzaffarabad and Karachi, which have been the key hubs for Lashkar-e-Taiba’s previous major attacks in India that are supervised by Pakistan army and the ISI from control centres,” said one of the people cited above.


Intelligence sources also indicate that a coordinated, state-sponsored plan was in place to send a larger number of highly trained terrorists into India.


Referring to earlier alerts, a second official said that in December and January, “there were alerts that Pakistan army and ISI were actively facilitating infiltration of highly skilled terrorists of Lashkar-e-Taiba (LeT) and Jaish-e-Mohammad from the Line of Control (LoC) and the International Border (IB) into India.”


In February and March, the National Investigation Agency (NIA) carried out extensive searches across several locations in Jammu and Kashmir to locate these infiltrated terrorists and the overground workers assisting them.


It is believed that once these terrorists entered India, they were aided by local overground workers who provided them with food, shelter, and financial support while moving them to different locations.


In a March statement, the NIA said, “terrorists were believed to have made their way to the hinterland districts of Kathua, Udhampur, Doda, Kishtwar, Reasi, Rajouri, Poonch, and also to the Kashmir valley.”


A senior intelligence official in Kashmir said, “currently, there are estimated 55 to 60 highly trained foreign terrorists in the Valley.”


According to the second officer, the Pakistani spy agency ISI has equipped terrorists with the offline version of the Alpine Quest navigation app, which is commonly used by professional trekkers.


“There is information that ISI has provided details of Indian security forces camps, police convoy movement, and barricades with this app to the infiltrated terrorists,” he said, adding that the terrorists are also using encrypted radio communication devices with servers based in Pakistan.


A third official said the terrorists tend to stay in mid-ridge areas of the Valley to avoid detection at lower altitudes.


In response to the Pahalgam attack, the Centre has reportedly instructed the Border Security Force (BSF) and the Army to intensify efforts to stop infiltration.

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