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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.

Why PM Narendra Modi named the cross-border strike 'Operation Sindoor'



New Delhi: In an unusually personal and symbolic gesture, Prime Minister Narendra Modi named India’s latest cross-border military operation targeting Pakistan and Pakistan-Occupied Kashmir (PoK) as Operation Sindoor. The name served not just as a military codename, but as a heartfelt tribute to the widows of the 26 Indian civilians who lost their lives in the April 22 terrorist attack in Pahalgam.


Government sources familiar with the matter said the Prime Minister was profoundly moved by the civilian casualties and was determined that India's response reflect both strategic strength and emotional resonance.


Why ‘Sindoor’?

The term sindoor—a red vermilion powder traditionally worn by married Hindu women—was chosen to represent the grief of families shattered by the attack, especially the women now widowed. In internal security briefings following the massacre, PM Modi is said to have stressed that the objective of the terror strike was not just to kill, but to break families and spread fear.

India’s counteraction, he reportedly insisted, needed to do more than display military might; it had to deliver a strong national message of remembrance, dignity, and justice. Thus, Operation Sindoor became not just a tactical response, but a public affirmation that the nation would not allow terrorism to become an accepted reality.


One of India’s Largest Coordinated Strikes in Recent Memory

The operation itself marked one of the most extensive joint strikes India has undertaken in recent years. With the Army, Navy, and Air Force acting in concert, Indian forces struck nine terror-linked targets within Pakistan and PoK.


High-value sites associated with terror outfits like Jaish-e-Mohammed, Lashkar-e-Taiba, and Hizbul Mujahideen—long blamed for cross-border attacks—were hit. Confirmed strike locations include Bahawalpur, Muridke, Muzaffarabad, Kotli, and Sialkot.


Rafale Jets at the Forefront

The Indian Air Force spearheaded the offensive, using Rafale fighter aircraft equipped with SCALP cruise missiles and Hammer precision-guided bombs. According to officials, these strikes were executed with pinpoint accuracy, carefully calibrated to avoid civilian and regular military sites.


A government statement issued late at night emphasized that the operation was “targeted, restrained, and proportionate,” aimed squarely at terrorist infrastructure while avoiding broader escalation.

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