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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.

"Preparation is prevention": Former IPS officer Kiren Bedi on mock drills



New Delhi: Former IPS officer and former LG of Puducherry Kiren Bedi on Tuesday said that mock drills called by the Ministry of Home Affairs (MHA) across various cities in India are not a cause to "worry" about but a self-assurance that everyone is coming together.



Bedi added that people are now taking responsibility to protect themselves in different situation, adding that "preparation is prevention."



Speaking with ANI, Kiren Bedi said. "It's a cause for not to worry but it causes self-assurance and greater assurance because now we the people of India, the youth of India, the energetic of India, the healthy of India, men and women and the youth all coming together for each other. They're all coming for themselves and each other. They are taking responsibility for each other and themselves, and how to protect themselves in different situations. So, I think preparation is prevention."



Emphasising the need to be prepared at every occasion, Bedi said, "the preparation means you prevent so many disasters, and it also works in collaboration with the local police, with disaster management authorities, the NCC students, the NSS, the civil defence, the home guards, the police and all of them."



Earlier, Union Home Ministry has asked several states to conduct mock drills on May 7 to enhance Civil Defence effectiveness. The measures to be undertaken include operationalisation of Air Raid Warning Sirens and training of civilians, students, and others on Civil Defence aspects to protect themselves in the event of a hostile attack.



According to a letter written to Chief Secretaries, the Union Home Ministry said the exercise aims to assess and enhance the readiness of Civil Defence mechanisms across states and Union Territories.



The exercise is planned up to the village level. "Ministry of Home Affairs has decided to organise Civil Defence Exercise and rehearsal across 244 categorised Civil Defence Districts of the country on May 7, 2025," the letter said.



The primary objectives of the mock drill include assessing the effectiveness of air raid warning systems, operationalisation of hotline, radio communication links with IAF, testing functionality of control rooms and shadow rooms, training of civilians including students on civil defence aspects to protect themselves in the event of hostile attack and provision of crash blackout measures.



The objectives also include the provision of early camouflaging of vital installations, to verify the activation and response of Civil Defence Services including warden services, firefighting, rescue operations and depot management, assessing the implementation of crash blackout measures and evaluating the preparedness of evacuation plans and their execution.



The Home Ministry had on May 2 written to Chief Secretaries of all states and UTs about civil defence preparedness in the vulnerable areas and districts.



Twenty-six people were killed in the terror attack in Pahalgam on April 22. The government has said that perpetrators will face severe punishment.

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