India becomes third-largest agrochemical exporter with US$ 3.3 billion exports

India’s agrochemical exports have nearly trebled in the past decade, rising to US$ 3.3 billion in FY25 from US$ 1.3 billion in FY15, making the country the third-largest exporter after China and the United States, according to a report by the Agro-Chemicals Federation of India (ACFI) and Deloitte. The report highlighted the need for policy support to sustain this growth momentum. ACFI has urged the government to introduce a Production Linked Incentive (PLI) scheme and tax holidays for the sector, noting that these measures could reduce dependence on imports of key molecules and help develop large-scale manufacturing hubs. It further emphasised the importance of greater public-private cooperation in research and development, along with stronger support for micro, small and medium enterprises (MSMEs), to enhance India’s global competitiveness.
The domestic agrochemical market was valued at about Rs. 69,000 crore (US$ 7.82 billion) in FY24, with exports accounting for 51% by value and domestic formulations 49%. The market is largely dominated by multi-source generics, with an 80% share, and this share is expected to rise further as more products go off-patent globally. In FY24, insecticides accounted for 41% of the market, followed by herbicides at 22% and fungicides at 21%, while plant growth regulators, biostimulants, and seed treatment products made up the balance. Herbicides grew at a compound annual growth rate (CAGR) of 10% between FY21 and FY24, making it the fastest-growing segment. Eight crops, including rice, cotton, wheat, soybean, chillies, grapes, sugarcane, and gram, drive nearly 65% of domestic demand, with Maharashtra, Goa, Andhra Pradesh, Telangana, and Madhya Pradesh leading in consumption.

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