Indian agrochemical sector poised for 9% CAGR growth by FY28, says report

The Indian agrochemicals industry is projected to grow strongly at a compound annual growth rate (CAGR) of 9% from FY25 to FY28. This growth will be driven by several factors: Government support for the industry, expansion of production capacities by companies, Increasing demand in both the domestic and export markets, Introduction of new innovative products. This steady growth is expected to increase the size of the Indian agrochemicals market to US$ 14.5 billion by FY28, up from the current level of around US$ 10.3 billion.

The report also found that India's agrochemicals exports have seen impressive growth, registering a strong 14% CAGR from FY19 to FY23, reaching US$ 5.4 billion in FY23. In contrast, imports grew at a more moderate 6% CAGR during the same period, solidifying India's position as a net exporter of agrochemicals. Within the agrochemicals sector, herbicides have emerged as the fastest growing export segment, with a 23% CAGR from FY19 to FY23. The share of herbicides in total agrochemical exports has increased from 31% to 41% during this period.

The report also highlighted that India's agrochemical exports are becoming concentrated in a few key markets. The top 5 countries (Brazil, USA, Vietnam, China, and Japan) now account for nearly 65% of India’s exports. Agrochemicals remain low at just 0.6 kg per hectare, which is a fraction of the Asian average of 3.6 kg/ha and just a quarter of the global average of 2.4 kg/ha.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.