India’s agrochemical sector is showing strong resilience and is expected to grow steadily despite global challenges. According to a new report by media, the industry is projected to reach a value of USD 14.5 billion by 2027–28, growing at a compound annual growth rate (CAGR) of 9 per cent. In 2024–25, the market stands at around USD 11.2 billion, showing a year-on-year growth of 8.7 per cent.
However, the export side of the industry faced a tough year. In 2023–24, agrochemical exports dropped by 22 per cent, mainly due to lower demand worldwide, price competition from China, and buyers reducing excess stock. Despite these problems, experts believe that a slow but steady recovery will happen in 2024–25, thanks to better demand and India’s ability to produce quality products at competitive prices.
Herbicide Exports on the Rise
One of the standout trends in the report is the rapid growth of herbicide exports. From 2019–20 to 2024–25, herbicide exports grew at a CAGR of 20%. Their share of total agrochemical exports increased from 31 per cent to 37 per cent during this time.
The increase is mainly because of rising global demand and the higher cost of agricultural labor. Countries are looking for affordable and effective crop protection, and Indian companies are filling that need. Japan has now become the second-largest buyer of herbicides from India, overtaking Brazil. The United States and Brazil still lead as major markets for insecticides and fungicides.
Industry Adapts to Global Challenges
Mohan Ramaswamy, CEO of Rubix Data Sciences, explained that although the export drop was a setback, the industry is adjusting well. “Indian manufacturers are becoming more efficient, exploring new markets, and updating their product range,” he said. He added that Rubix is helping companies understand market trends and make smart business decisions through reliable data.
