top of page

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.

UK targets student visas from Pakistan in effort to lower migration

  • PTI
  • May 6, 2025
  • 2 min read


Islamabad: The British government is considering placing restrictions on visa applications from international students, particularly those from countries like Pakistan, which are seen as having a higher likelihood of asylum claims, according to a report by Dawn.



This initiative is part of a broader effort to reduce the country's annual net migration, according to an official source.



This development comes after Prime Minister Keir Starmer's Labour Party lost in recent local elections in England, where voter dissatisfaction over issues such as illegal immigration played a key role.



The government is expected next week to publish a policy document, known as a white paper, which will set out how the government plans to reduce net migration, which reached 728,000 people in the year to June last year, Dawn reported.



In a statement, the Home Office said, "Our upcoming Immigration White Paper will set out a comprehensive plan to restore order to our broken immigration system."



Legal migration has remained a contentious issue in British politics for years, significantly influencing the 2016 Brexit vote.



According to government statistics, 1,08,138 people claimed asylum in the UK in 2024, which was 18 per cent more than in 2023 and 5 per cent more than the previous recorded peak of 1,03,081 in 2002. In 2024, 84,231 claimants were main applicants and 23,907 were dependants.



According to the government, individuals from Pakistan, Nigeria, and Sri Lanka are among the most likely to apply for asylum in the UK after entering the country on work, student, or visitor visas.



Pakistan (10,542), Afghanistan (8,508) and Iran (8,099) were the most common nationalities claiming asylum in 2024, together representing 25 per cent of people claiming asylum. The largest increase in claims came from Pakistani and Vietnamese nationals. Pakistani nationals claiming asylum have risen 79 per cent in the latest year to 10,542 and claims from Vietnamese nationals have more than doubled (+113 per cent) to 5,259.



Following Labour's disappointing performance in last week's local elections, several party MPs have called on the government to adopt a firmer stance on key issues--particularly in reducing net migration.

Comments

bottom of page