The Indian chemical industry is redefining compliance, making safety, ethics, and regulation core to daily operations. Leaders stress the need for clearer rules, stronger skills, digital systems, and sustainable practices aligned with global standards. Compliance is no longer just a challenge but a growth enabler, with a culture of responsibility seen as vital to India’s global competitiveness.

The subject was discussed intensely at the fourth edition of ChemConnect 2025 themed ‘Disruption, Innovation, & Resilence’ organized by the Indian Chemical News on August 21, 2025 in Mumbai. 

The third session of the event titled, ‘Navigating Regulatory Complexity in Global Chemical Logistics’ was moderated by Abhishek P. Rao, Founder, CSRLSC & Advisor to Chairman, RSA Global.

Rao underscored that compliance isn’t just about paperwork at the origin and destination but requires anticipating rules at every stop and collaborating with regulators and industry experts to set clear standards.

“We once faced a striking example of regulatory complexities while moving a product from India to Azerbaijan. At both the origin and the destination, all regulatory compliances were in place. But because the shipment had to pass through Bandar Abbas as a trans-shipment point, complications arose. Officials there claimed that someone was conspiring against us, suggesting that India was supplying raw materials to Azerbaijan to build a bomb. Normally, the process is straightforward: the origin takes responsibility for paperwork and permissions, the destination does the same, and the trans-shipment point, Bandar Abbas in this case, receives the documents in advance so all parties are aware of the cargo in transit. Despite this, our shipment was stopped. What followed was a lengthy process involving embassies and multiple authorities. After one and a half months of navigating regulatory hurdles, the material was finally released. I share this to underline an important lesson: compliance is not just about having your own paperwork in order. Sometimes your people may not be aware of additional rules or interpretations at different checkpoints. That’s why it’s crucial to set clear start and end points, identify every possible stop in between, and build standards in collaboration with industry experts and regulators,” said Rao. 

Anant Pant, Director Supply Chain - India, Middle East and Africa, The Lubrizol Corporation emphasizes that India must simplify and standardize regulations, remove ambiguities, and invest heavily in skill development to align with global standards.

“I believe the way we approach compliance and regulatory complexity defines how effectively we can manage them. It is not just about navigating rules, but also about understanding the consequences of our choices. Our founder, Warren Warren, had a very simple philosophy: before taking any action, ask yourself two questions. What if this appears in tomorrow’s newspaper and you are not comfortable with it? What if your family comes to know about it tomorrow and will you still sleep peacefully at night? These are very basic principles, but they serve as powerful guides for building systems, structures, and preventive policies. Compliance is not a separate activity but a part of how we conduct business every day. For us, safety, ethics, and compliance are the pillars on which everything else rests. Business comes only after we meet these basic responsibilities. This philosophy has helped us as a global organization that is nearly 100 years old, with 60 years of operations in India, to maintain a strong history and record of regulatory compliance. It has kept us proactive, ahead of the curve, rather than reacting to complexities as they arise,” said Pant.

From this perspective, two immediate priorities stand out. First, we need clear processes and clear rules. Today, there is too much ambiguity in how regulations are written and interpreted. Simplification and standardization are essential, particularly if India wants to align with global best practices. Second, we must invest in skill development. Under Atmanirbhar Bharat, we need to strengthen our workforce by offering proper training, technical courses, and opportunities that match international standards. This will raise our collective capability and ensure that compliance is not just a burden but a strength. The chemical industry illustrates this well. India is already the world’s sixth-largest producer of chemicals, and going forward, around 20% of incremental global consumption will come from India. With the right processes, a level playing field, and alignment to international standards, this sector alone can unlock immense opportunities, especially in exports,” he added.

Shanker Kuppuswamy, Former CEO, Nicer Globe argues that regulations are only the baseline and true change requires personal and organizational ownership that goes beyond compliance.

“All of us live and work in an unsafe environment, and the chemical industry is no exception. Every year, more than 1,200 road accidents involving chemicals are reported in India. The impact of these incidents goes far beyond the immediate damage, causing collateral harm across the supply chain and the wider community. This is not about compliance alone. Regulations are the bare minimum, but compliance without ownership does not change behavior. True safety and accountability must come from within, from a sense of responsibility that goes beyond what the rulebook demands. In my experience, this has never been a perfect or easy journey. The environment keeps changing, new challenges emerge, and we are constantly learning. Success comes not from checking boxes, but from building a culture of consciousness and responsibility. Regulation can provide a framework, but unless individuals and organizations take ownership, the reality on the ground will remain far from what the documents say,” said Kuppuswamy.

“The supply chain illustrates this well. In sourcing, manufacturing, and distribution, we have embraced efficiency and modernization. But when it comes to logistics, we still see it largely as a cost rather than a critical process. Ownership often remains fragmented, taken seriously by a few passionate people but not by all. Unless there is broad consensus across stakeholders, risks will persist. The consequences of neglecting this responsibility are severe. I have seen industry colleagues arrested and held behind bars for days, weeks, even months, because of lapses in accountability. Imagine spending even a single day in jail for something that could have been prevented. None of us should have to go through that. These are dark stories, but they carry lessons that must be shared. Ultimately, safety and compliance in our industry cannot rest on regulation alone. Every stakeholder must understand the risks, take ownership, and act responsibly. Only then will we move from talking about problems to truly preventing them,” he added.

Pradeep Nair, Head - Logistics & Exim, Huntsman Solutions India emphasizes that compliance in the chemical industry should not be seen as a burden but as a responsibility to protect people, the environment, and the supply chain.

“When I interact with colleagues in the industry, I often find that the words compliance and regulation are treated almost like synonyms for fear. Many see them as restrictive, and there is hesitation in following policies. But in my view, especially in chemical manufacturing, we need to recognize that compliance requirements exist for a reason: to safeguard the environment, protect people’s health, and ensure the safety of everyone in the supply chain. For companies like ours, compliance is not optional. It is a responsibility. If we have strong processes in place and choose the right channel partners, we can navigate regulatory complexities without shortcuts. Too often, industries look for ways to bypass requirements, but this only creates greater risk. Proper systems and partnerships make it possible to comply fully and still run operations efficiently,” said Nair.

“The sustainability is now a global talking point. The question is: are we really meeting international sustainability standards? In many cases, the answer is no. For instance, while we encourage transport vendors to use cleaner fuels such as LNG or electric vehicles, the infrastructure in India is not yet ready. Charging stations and LNG fueling points are still too few to support large-scale adoption. Building this infrastructure must be a national priority if we are serious about sustainable logistics. Another critical area is digital implementation. At present, there is no unified platform that industries can access to understand regulatory requirements. Each company has to navigate a maze of fragmented information. Imagine a digital platform where, for example, an exporter could check all requirements for sending material to Europe, or an importer could clearly see the rules for bringing certain products into India. A transparent, industry-specific digital compliance platform would save time, reduce errors, and increase confidence across the supply chain. Compliance is not about fear but about responsibility, sustainability, and efficiency. With the right systems, infrastructure, and digital tools, we can make regulatory adherence not just easier, but a driver of growth and trust for the entire industry,” he added.

The ChemConnect 2025 was supported by Netradyne as the Platinum Partner. The Gold Partner of the event was JM Baxi and the Associate Partner was dDriven.