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.

Pakistani troops open unprovoked fire at Indian posts along LOC as tensions escalate over Pahalgam massacre



Pakistani troops opened "unprovoked" fire at Indian posts across the Line of Control last night as tensions between the two countries escalated following the massacre of 26 civilians at a tourist hotspot in Jammu and Kashmir's Pahalgam. This marks the second time in two nights that Pakistani troops have attempted to provoke the Indian side.


The Indian Army reported firing from multiple posts along the Line of Control, the boundary separating Indian and Pakistani forces in Jammu and Kashmir and Ladakh. Officials said Indian troops responded appropriately to the Pakistani fire.


"On the night of 25th-26th of April 2025, unprovoked Small Firing was carried out by multiple Pakistan Army post all across the Line of Control in Kashmir. Indian troops responded appropriately with small arms. No casualties reported," the statement read.


Speculative firing was also reported yesterday, with military sources suggesting that Pakistani troops were testing the alertness of Indian soldiers, amid calls within India to take decisive action against terror hotspots along the LoC.


These ceasefire violations follow a series of measures taken by India in response to the Pahalgam terror attack. In the Tuesday massacre, at least 26 civilians vacationing in Baisaran meadow, known as "Mini Switzerland", were shot dead by five terrorists. The Resistance Front (TRF), linked to Pakistan-based Lashkar-e-Taiba (LeT), has claimed responsibility for the attack.

Sources suggest that 26/11 mastermind and Lashkar chief Hafiz Saeed was the handler of the foreign terrorists who carried out the attack.

In response, India took strict action, suspending the Indus Water Treaty, citing "sustained cross-border terrorism by Pakistan". In a strong message from Delhi, Water Minister CR Patil threatened that "not a drop" of the Indus water would flow to Pakistan.


Vowing to punish every terrorist, Prime Minister Narendra Modi declared that Indian troops would pursue them to the ends of the earth. He added that those involved in the terror attack and the conspirators would face a punishment larger than they could imagine.


India and Pakistan have also pulled their diplomatic staff and stopped visa services for each other's nationals. Visitors now have a short deadline to return to their homeland, and cross-border visits are unlikely to resume until the situation defuses.


Islamabad has suspended all bilateral pacts with India, including the Simla Agreement. Wagah Border, which once drew thousands of tourists and hosted the popular border ceremony, has also been closed.

Comments

bottom of page