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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.

Security First, Sentiment Later: Why India Must Learn from Israel Before It’s Too Late

After Pahalgam, it is time India abandoned illusions and learned the hard truths about national security.

In the days leading up to the gruesome Pahalgam attack in which more than 25 hapless tourists - mostly Hindus - were slaughtered, Pakistan’s Army Chief, General Asim Munir, had offered a chilling ideological prelude. Speaking in Islamabad, Munir invoked the lethal ‘Two-Nation Theory,’ stating that Hindus and Muslims are destined to remain separate, divided by customs, traditions, and ambitions.


Except to the ideologically warped (and there are many such among India’s intellectual elite), the message that Munir sent out was deliberate and unequivocally clear: Pakistan’s establishment has not moved on from 1947 – it never had. Many drew comparisons with Yahya Khan’s infamous speech in 1971, when his refusal to grant dignity and autonomy to East Pakistan led to the killing of lakhs of Bangladeshi (then East Pakistan) Muslims and Hindus by the Punjabi Pakistanis and ultimately birthed independent Bangladesh.


Kashmir has never been merely a territorial dispute; it has always been an existential confrontation, long sustained by the Pakistani state and its ideological progeny.


In the wake of such ghoulish attacks, we (as people of other nations do as well) often cite Israel as an unflinching template. Faced with a fraction of India’s provocations since its troubled birth in 1948, Israel - surrounded by hostile Arab states on all sides and facing existential threats since its birth - has consistently demonstrated an uncompromising approach to national security. The Israeli response to terrorism has never been shaped by sentiment, but cold strategic calculation.


When Hamas militants stormed southern Israel on October 7, 2023, the response was immediate and overwhelming. The Israel Defense Forces (IDF) did not split hairs about “militants” versus “civilians,” did not fret over editorials in The Guardian or lamentations from Hollywood ‘liberals’ like Susan Sarandon. Despite fierce conflicts with their establishment, they bombed (and continue to do so) Gaza’s heart out, flattening the infrastructure that nursed the terrorism in the first place.


Israel’s response has been undeniably brutal and unflinching. It was also survival made manifest, evinced in each of their signature operations whenever their civilians have been killed or national security threatened. After Palestinian ‘Black September’ terrorists murdered Israeli athletes at the 1972 Munich Olympics, Israel launched ‘Operation Wrath of God’ - a methodical, years-long campaign by Mossad to track down and eliminate those responsible, wherever they were hiding. No sanctuaries were respected. No apologies were offered. No illusions were entertained.


When Israeli hostages were hijacked to Entebbe, Uganda, in 1976, Israel, in an incredible operation, sent commandos 4,000 km. halfway across Africa to rescue them in a dazzling raid that became a byword for audacity and efficiency. The message was clear: no Israeli life is expendable, no matter how far, no matter the cost. Ali Hassan Salameh, the ‘Red Prince’ of Palestinian terror and the brain behind the Munich Olympic massacres, was shadowed by the Mossad for years before he was finally assassination by a car bomb in Beirut in 1979.


Even today, while Western diplomats natter about ceasefires and ‘root causes,’ Israel’s security services relentlessly and ruthlessly continue their work, whether eliminating Islamist militants in Beirut, Damascus and elsewhere, with neither fanfare nor regret.


For Israel understands that survival in a hostile environment requires not sympathy but strength and that in the balance between protecting citizens and courting the approval of liberal critics abroad, there can be only one choice.


India, by contrast, has always sought a moral high ground that its enemies have neither respected nor reciprocated. Forget Pakistan, even Bangladesh, whom we helped ‘liberate’ in 1971 from the massacre perpetrated by their own Muslim co-religionists of West Pakistan, bares its fangs at us today by fomenting unrest within India. Every retaliatory strike against Pakistani-backed terrorists like Uri and Balakot is followed not merely by outrage from Islamabad, but by strident lamentations from within India’s own intellectual class. Ferocious outbursts against the Indian Armed Forces have been voiced by this so-called ‘left-liberal’ elite, who hit out against the alleged ‘disproportionality’ of the Indian response, the ‘alienation’ of the local Kashmiri (Muslim) population, and their ‘human rights.’


It is high-time India fortified its internal discourse. Counterterrorism efforts cannot succeed if every security measure is second-guessed in the name of civil liberties, while the victims of terror receive only passing sympathy.


The ideological fervour driving attacks like Pahalgam cannot be reasoned with. That said, I am well aware that the contrast with Israel is imperfect. India’s Muslim population numbers nearly 200 million and the internal calculus for our country is far more delicate. Yet, invoking fears of communal riots as an excuse for inaction has become over the years a psychological crutch, an abdication disguised as ‘prudence.’


Israel understood long ago what India still wrestles with, that survival sometimes demands the courage to be hated.


In the 14th century, under the reign of Sikandar Shah Miri, known by his infamous moniker butshikan (‘the iconoclast’), Hindu temples were razed, scholars driven into exile, and a once-pluralistic region systematically Islamized.


The pain of Kashmir’s Hindus is the echo of centuries, which found a disturbing voice in Pahalgam on Tuesday when the terrorists callously gunned down the tourists after checking if they were Hindus and by being asked to repeat Islamic verses.


They’ll be those who scream that ‘terror has no name.’ India’s history has regrettably been one long, ‘Dark Age’ where terror had a name and was later subsumed under the glitter of glorious architecture and the efflorescence of cultural exchange.


Modern India, ever anxious to appear magnanimous, has often buried this history under layers of revisionism and amnesia. In textbooks and diplomatic communiqués of earlier decades saw the violence diluted, and the memory of this terror domesticated.


And yet, the ghosts persist. In Kashmir, they have lingered in the slogans of the militants, in the graffiti scrawled across shuttered shops, in the hollowed-out temples where Pandits once prayed.


When terrorist asked the hapless tourists if they were ‘Hindu,’ it hits us that Pahalgam, in its awful way, is a continuation of that long historical line. The blood spilled at Pahalgam demands not eloquence but action. India must finally decide: will it continue to endure these massacres stoically, waiting for the next, or will it, like Israel, make the wages of terror so unbearable that its enemies think twice before daring again?


To state the obvious, India will have to swiftly restore the credibility of deterrence. Deterrence works only when the enemy knows that violence will invite certain, swift, and severe retaliation.


As we come to grips with slaughter at Pahalgam, there is a keen sense of anger across a country where patience with bloodletting has long been praised as virtue. There is a growing, brittle hunger for something more primal: survival without apology. After all, in security, as in life, there are no prizes for virtue-signalling from the grave.


The barely suppressed demand is that India must be willing to strike not only across the Line of Control by recognizing its real enemy – not a handful of ragtag terrorists but the Pakistan state, the headquarters of its generals, the ideological factories of hatred.


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