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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.

The OBC Unifier

Chhagan Bhujbal is known as a prominent OBC face in Maharashtra politics. He is also a good orator and had even acted in several Marathi films in his early days in the politics. He doesn’t hesitate in speaking out his mind and that keeps him involved in some or the other controversy all the time. His acts and words also help him remain in news headlines. It appears as if he loves all this.


Born on October 15, 1947, Chhagan Bhujbal started with a very humble background in Mumbai. With the family roots in Nashik, he used to run a family-owned vegetable shop at Byculla while pursuing his education in engineering. He was also involved in several social activities in the area that led him to join politics under Bal Thackeray. Eventually he became the corporator and then the Mayor of Mumbai. As a prominent Shiv Sena leader, he was known for his fiery speeches and strong organizational skills, which helped him gain popularity among the masses. As Mayor, he gave slogans like ‘Clean Mumbai Green Mumbai’ which became very popular.


Due to internal party politics, Bhujbal switched sides in 1991 and joined the Indian National Congress (INC) under the leadership of Sharad Pawar. He remained loyal to Pawar till 2023 when he left the NCP under Sharad Pawar along with Ajit Pawar and majority of other MLAs of the party. He had served as the Deputy Chief Minister of Maharashtra from 2009 to 2010 and had been a Cabinet Minister in various capacities, including Public Works, Tourism, and Social Justice during UPA and Mahayuti regimens in the state.


He faced allegations of corruption and misuse of power, which have led to legal battles and investigations. In 2016, he was arrested by the Enforcement Directorate (ED) in connection with a money laundering case. However, he consistently denied any wrongdoing and maintained that the charges against him are politically motivated. In 2023, he was appointed as the Minister of Food, Civil Supplies, and Consumer Protection in the Eknath Shinde-led government.


While pursuing the politics within the NCP, Bhujbal emerged as a prominent OBC face of the state. He hails from the prominent Mali community. He floated Mahatma Phule Samata Parishad to pursue Mahatma Phule’s social agenda of equality. However, this was the same Bhujbal who, as a Shiv Sena leader, had ‘cleaned’ the Hutatma Smarak (martyre’s memorial at Flora Fountain in Mumbai) with ‘cow urine’ after it was defaced during a Dalit rally just about a couple of years before he joined Congress.


Bhujbal is also known for his keen sense of humour. His speeches in the assembly are spiced with apt anecdotes that make listeners giggle and laugh even as his opponents are hit hard. His standard reply, in jovial manner, whenever a journalist asks him about switching political party remains, “We do it for better prospects!”

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