The India agrochemicals market is driven by the rising population within the country, which has led to maintaining sufficiency in agricultural practices, further boosting the use of Indian agrochemical products for farming activities. Several other factors that affected the growth of India's agrochemical industry include an increase in the population growth, rising need for food production, and economic growth.
The positive trend and the integrating farming practices in the country are expected to propel the industry growth rate of agrochemicals in India within the forecast period. However, the market may find hindrance due to low awareness of the benefits of agrochemicals among the farming community, and their low acceptance of the modern-day farming practices.
The COVID-19 Pandemic has impacted almost every economy and every sector in the world but the agriculture sector in India has demonstrated phenomenal resilience and has largely remained unscathed. The sector is pivotal in two ways; protecting the crops and produce from pests and increasing farm productivity. Insecticides dominate the Indian Crop Protection market and form almost 53% of the domestic crop protection chemicals market, followed by Herbicides 24%, Fungicides 19%, and others 4%. As far as the Indian Pesticide Industry is concerned, India currently is the 4th largest global producer of pesticides after the USA, Japan, and China. Domestic consumption of pesticides in India is worth US$ 2.77 billion while exports are worth US$ 2.31 billion, a total market size worth US$ 5.08 billion. The exports by Indian companies' generic segment producing a wide range of world-class formulations significantly contributed to the growth.
The year 2022 will be critical for agriculture and its allied industries to get government support, as agriculture continues to play a vital part in fuelling India's GDP growth. With a market size of around Rs 30000 Cr, the agrochemicals industry will play a critical role in improving India's agricultural capability. With higher research and development spending, 2022 will undoubtedly be the year of new products and collaborations, propelling market revenue growth throughout the next decade.
In terms of trade, India is a major exporter and importer of agrochemicals. India was the fifth-largest exporter of agrochemicals in 2019 when it exported pesticides worth USD 3.4 billion (9.4% of global exports).