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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.

UN Security Council 'strongly condemns' Pahalgam terror attack

  • PTI
  • Apr 26, 2025
  • 2 min read


NEW DELHI: The UN Security Council has condemned in the strongest terms the terror attack in Jammu and Kashmir's Pahalgam, underlining the need to hold the perpetrators, organisers and the sponsors of "this reprehensible act of terrorism" accountable and bring them to justice.


The 15-nation UN Security Council (UNSC) issued a press statement on Friday in which it reaffirmed that terrorism in all its forms and manifestations constituted one of the most serious threats to international peace and security.


"The members of the Security Council condemned in the strongest terms the terrorist attack in Jammu and Kashmir on April 22, during which at least 26 people were killed and many more injured," it said in the press statement.

A press statement is a declaration to the media made by the UNSC president on behalf of all 15 members.


Pakistan currently sits in the UNSC as a non-permanent member.


The UNSC members expressed their deepest sympathy and condolences to the families of the victims and the governments of India and Nepal. They wished a speedy and full recovery to the injured.


They also underlined the need to hold the perpetrators, organisers, financiers and the sponsors of "this reprehensible act of terrorism" accountable and bring them to justice.


The UNSC stressed that those responsible for the killings should be held accountable and urged all States, in accordance with their obligations under international law and relevant Security Council resolutions, to cooperate actively with all relevant authorities in this regard.


The members reiterated that any acts of terrorism were criminal and unjustifiable, regardless of their motivation, wherever, whenever and by whomsoever committed.


They reaffirmed the need for all States to combat, by all means, in accordance with the Charter of the United Nations and other obligations under international law, including international human rights law, international refugee law and international humanitarian law, threats to international peace and security caused by terrorist acts.


Twenty-six people, mostly tourists, were killed in Tuesday's Pahalgam terror attack that triggered widespread outrage within India and abroad.


India on Wednesday announced a raft of punitive measures against Pakistan, including the expulsion of Pakistani military attaches, suspension of the Indus Waters Treaty and immediate closure of the Attari land-transit post, in view of cross-border links to the terror attack.


In its response to India's actions, Pakistan on Thursday decided to shut its airspace to all Indian airlines and suspended trade with New Delhi, including through third countries.


Pakistan also rejected India's suspension of the Indus Waters Treaty and said any measures to stop the flow of water belonging to Pakistan under the pact would be seen as an "act of war".

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