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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.

US Vice President JD Vance urges Pakistan to cooperate with India in hunting down Pahalgam terrorists



Washington: US Vice-President J.D. Vance has said that the US hopes that Pakistan would cooperate with India to hunt down the Pakistan-based terrorists responsible for the terror attack in Jammu and Kashmir's Pahalgam last month.


"Our hope here is that India responds to this terrorist attack in a way that doesn't lead to a broader regional conflict," Vance said on Thursday in an interview on Fox News' "Special Report with Bret Baier" show.


"And we hope, frankly, that Pakistan, to the extent that they're responsible, cooperates with India to make sure that the terrorists sometimes operating in their territory are hunted down and dealt with," the Us Vice-President added.


During the interview with Fox News, Vance made his first public remark on the attack, which left 26 people dead.


Vance and his family were in India on a four-day visit when the carnage -- the worst since the Pulwama attack on CRPF personnel in 2019 -- took place.


The Vice-President's remarks assume significance amid rising tensions between India and Pakistan in the aftermath of the Pahalgam attack.


Vance, who was in India last month, had then condemned the attack and expressed solidarity with the victims and their families in a post on X.


The Pahalgam attack, which claimed the lives of 25 tourists and one local, was one of the deadliest attacks on civilians in the Kashmir Valley in recent times. The terrorists had planned the attack on a scenic meadow which required hiking or using a pony service to get to the spot.


US Secretary of State Marco Rubio spoke with External Affairs Minister S. Jaishankar and Pakistan Prime Minister Shehbaz Sharif on Wednesday, amid escalating tensions between the two countries following the Pahalgam terror attack that claimed 26 lives.


Rubio asked Pakistani officials to cooperate in the investigation and work to de-escalate tensions between them.


In his first public remarks on the attack, Home Minister Amit Shah on Thursday said that India will give a fitting and precise response to every act of terrorism.


Sending a strong warning to terrorists, Amit Shah said, "If anyone thinks that a cowardly attack is their victory, they must remember this is Narendra Modi's India — and revenge will be taken, one by one."



Prime Minister Narendra Modi has vowed to "pursue" the perpetrators and their backers "to the ends of the earth".


India downgraded its ties with Pakistan following the Pahalgam attack and took several diplomatic measures, including the pausing of the Indus Waters Treaty, expelling all Pakistani military attaches, closing its airspace to Pakistani airlines and the shutting down of the Attari-Wagah border.


In response, Pakistan undertook tit-for-tat measures and suspended the Simla Agreement.

India on Thursday relaxed its deadline allowing Pakistani nationals to return to Pakistan via the Attari-Wagah border. But, Pakistan has not yet reciprocated with the same measure by allowing Indian nationals into the country.

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