India’s agrochemical industry set for 9% CAGR growth: Report

India's agrochemical inIdustry, presently estimated to be around USD 10 billion, is poised for significant growth, with projections suggesting it will surpass USD 14.5 billion by the end of the financial year 202728. This optimistic forecast comes from a report by Rubix Data Sciences, an analytics services provider.

However, the industry experienced a 3 percent degrowth in the recently concluded financial year 2023-24, attributed to several key factors, including the influx of competitively priced products from China, which further exacerbated the situation.

The export market, traditionally commanding over 50 percent of the industry's revenue, faced sluggish growth during this period.

This slowdown can be largely attributed to a global destocking trend, where international players likely opted to reduce their inventory levels, as noted in the report. Despite this recent downturn, the industry is expected to rebound, with a conservative projection of a 9 percent compound annual growth rate (CAGR) by 2027-28.

India has solidified its position as the world's second-largest agrochemical exporter, with its trade surplus nearly doubling from USD 1.8 billion in 2018-19 to USD 3.6 billion in 2022-23.

This robust growth underscores India's increasing importance in the global agrochemical market, driven by the country's expanding export footprint. The United States and Brazil have retained their positions as the top two export destinations for Indian agrochemicals over the past five years, highlighting the sustained demand from these key markets.