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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.

Will use full spectrum of power: Pak envoy issues nuclear threat to India



Amid rising tensions after last month’s deadly terror attack in Pahalgam, Pakistan’s Ambassador to Russia has issued a sharp warning to India, stating that Islamabad would respond with the “full spectrum of power” — including nuclear weapons — if New Delhi carries out any military action.


Speaking to Russian media outlet RT, Ambassador Muhammad Khalid Jamali claimed that "leaked documents" indicated India was planning targeted strikes inside Pakistan. He also warned that a conflict appeared “imminent.”


His comments come at a time when India continues to raise Pakistan’s involvement in cross-border terrorism through diplomatic channels and seeks international backing to hold Islamabad accountable for sheltering terror groups.


"The frenzy media of India and the irresponsible statements coming out from that side has compelled us. There are some other leaked documents whereby it has been decided to strike some areas of Pakistan. So, that makes us to feel that this is going to happen and it's imminent," he said.

"When it comes to India and Pakistan, we don't want to get involved into this debate of numerical strength. We will use the full spectrum of power - both conventional and nuclear," he said.


Jamali emphasized that Pakistan’s military, with the support of its people, would respond with the “full spectrum of power.”


Tensions in Pakistan have remained high over a possible Indian retaliation after Pakistan-backed militants carried out an attack on tourists in Jammu and Kashmir’s Baisaran valley near Pahalgam on April 22.


The threat follows a provocative statement made by Pakistan’s Defence Minister Khawaja Asif during a Geo News interview on Friday. He warned of striking any infrastructure India might build on the Indus River in violation of the treaty. “Certainly, if they attempt to build any kind of structure, we will strike it,” Asif said, also adding that “aggression is not just about firing cannons or bullets — blocking or diverting water is also a form of aggression that could lead to deaths from hunger and thirst.”


On Saturday, Pakistan’s military also conducted a test launch of the Abdali surface-to-surface missile, which can carry both conventional and nuclear warheads and has a range of 450 kilometres. The army stated the launch demonstrated “operational readiness.”


Earlier, Pakistani minister Hanif Abbas had also issued a nuclear threat, saying missiles such as Ghori, Shaheen, and Ghaznavi — along with 130 nuclear warheads — are "kept only for India."


He warned that if India moves to suspend the Indus Waters Treaty and limit Pakistan's water supply, it should prepare for a "full-scale war."


Also on Saturday, Pakistan Prime Minister Shehbaz Sharif said Islamabad had shown a "responsible and measured" response to India following the Pahalgam attack, while denying any Pakistani involvement in the incident that left 26 people dead. Speaking with Turkiye’s Ambassador in Islamabad, Sharif claimed India had provided no evidence and rejected Pakistan’s proposal for an international investigation.


Following the April 22 attack in Pahalgam — which killed at least 26 civilians, including a Nepalese tourist and a local pony guide — India has taken several strong measures after confirming links to Pakistan-based terror outfits.

Citing ongoing "sustained cross-border terrorism," India suspended the Indus Waters Treaty, the 1960 water-sharing agreement with Pakistan. This opens the possibility of restricting or diverting Indus River waters flowing into Pakistan, potentially affecting millions.


India has also revoked all visas issued to Pakistani nationals and ordered those present in the country, including those with medical visas, to leave.

In response, Pakistan threatened to end all bilateral agreements with India, including the Simla Agreement. Diplomatic relations between the two countries have been downgraded, and all backchannel talks have ceased amid worsening ties.


India has further issued a NOTAM (Notice to Airmen), blocking its airspace to all aircraft associated with Pakistan.


Additionally, the Indian government has imposed a total ban on all imports and transit of goods from Pakistan, including those typically allowed. The restriction covers all Pakistani-registered, operated, or leased aircraft — both civilian and military — and will remain in effect until the early morning of May 24, per the current NOTAM.

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