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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.

PM Modi travels to Adampur air base, says India eternally grateful to armed forces

  • PTI
  • May 13, 2025
  • 2 min read


New Delhi: Prime Minister Narendra Modi travelled to the Adampur air base in Punjab on Tuesday morning and interacted with air force personnel, who have been in the thick of action during the recent conflict with Pakistan.


India is eternally grateful to its armed forces for everything they do for our nation, he said on X following the visit.


Modi said, "Earlier this morning, I went to AFS Adampur and met our brave air warriors and soldiers. It was a very special experience to be with those who epitomise courage, determination and fearlessness. India is eternally grateful to our armed forces for everything they do for our nation."


The prime minister's visit comes after days of intense conflict between India and Pakistan following Indian strikes on terror sites in the neighbouring country on May 7 under Operation Sindoor.


The Adampur base is the second largest air base in the country.


PM Modi's choice of visiting the Adampur base of the India Air Force also sends out a message following Pakistani claim of destroying the prized S-400 air defence system in the station, which is home to India's key military platforms.


The defence forces, in a briefing during the conflict, had unequivocally rejected Pakistan's "false narratives".


India and Pakistan agreed on May 10 to stop military actions. India has, however, made it clear it has merely paused its operation and its future actions will be guided by Pakistan's conduct.


In his first address to the nation after Operation Sindoor, Modi had on Monday sternly warned Pakistan that India will not succumb to nuclear blackmail and sent a clear message to the world: terror and trade, terror and talks cannot go together.


"Operation Sindoor is India's new policy against terrorism and our unwavering pledge for justice. It is the new normal. We have only kept in abeyance our operations against Pakistan and the future will depend on their behaviour," Modi said in a 22-minute address.


The Indian Air Force on Monday said all its military bases and systems continue to remain fully operational, and ready to undertake any further missions if the need arises.


Director General of Air Operations Air Marshal AK Bharti said the Indian military's fight was with terrorists and their support infrastructure, but it was a "pity" that the Pakistani military chose to bat for the terrorists.

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