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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.

River Chenab water level drops in Akhnoor, locals back PM Modi's decision





Akhnoor (Jammu and Kashmir): The water level in the Chenab River has witnessed a significant drop in Akhnoor, Jammu and Kashmir, after the closure of gates at the Baglihar and Salal Dams. Locals have expressed support for Prime Minister Narendra Modi's decision to put the Indus Waters Treaty on hold, which they believe has led to the decrease in water levels.



Speaking to ANI, one of the locals exhorted that they don't want even a single drop of water to be supplied to Pakistan while extending support to the Indian Army and Prime Minister Narendra Modi.



A local Kalyan Singh said, "Earlier, the Chenab River used to flow at a height of 25-30 feet, but now there is hardly 1.5-2 feet of water left here. This is because of PM Modi's decision to put the Indus Waters Treaty on hold...We do not want even a single drop of water to be supplied to Pakistan. We are all standing with the Indian Army and PM Modi..."



Another local expressed shock over the drastic change in the level of water in the river Chenab in the Akhnoor area of the territory.



"In my 75 years of life, for the first time I have seen such low volume of water in Chenab, I express gratitude to PM Modi for taking this decision. I'm shocked to witness the drastic change in the river's water level, from once being full to now barely having 1-1.5 feet of water .... We stand with Indian Army..." he said.



Following the Pahalgam terror attack, which claimed 26 lives, mostly tourists, the Indian government took various measures against Pakistan.



The steps include suspending the Indus Water Treaty signed between both countries in 1960. Defence, Military, Naval, and Air Advisors in the Pakistani High Commission in New Delhi were declared persona non grata and asked to leave India within a week.



The government has affirmed its resolve to deal a crushing blow to terrorism. It has been said that the terrorists responsible for the attack and the conspirators behind it will face severe punishment.

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