India’s agrochemicals market set for big growth

New Delhi

India’s agrochemicals industry is expected to grow strongly, reaching USD 14.5 billion by 2027–28, according to a report by Rubix Data Sciences. The industry is currently valued at USD 11.2 billion in 2024–25 and is growing at an annual rate of 9 per cent, despite global economic challenges.

The sector faced a setback last year when exports dropped by 22 per cent. This fall was due to lower global demand, stockpiling by buyers, and strong price competition from China. However, experts say things are improving. With supply chains recovering and farm activity picking up, exports may rise again in 2024–25.

The report highlights a sharp increase in herbicide exports. From 2019–20 to 2024–25, herbicide exports grew at a 20 per cent annual rate. Their share in total agrochemical exports went up from 31 per cent to 37 per cent. This growth is linked to rising labour costs in farming and India’s ability to produce affordable and effective crop protection products.

Japan has now become the second-largest buyer of Indian herbicides, overtaking Brazil. Meanwhile, the United States and Brazil remain the main markets for Indian-made insecticides and fungicides.

Mohan Ramaswamy, CEO of Rubix, said that even though last year’s drop in exports was disappointing, it was part of a global reset. He believes Indian companies are adapting quickly by improving efficiency and finding new markets.

The overall outlook is positive, with steady growth expected as India strengthens its place in the global agrochemical industry.