Indian Economy News

Indian fertilizer industry on track to reach US$ 16.58 billion (Rs. 1.38 lakh crore) by 2032 amidst robust growth and strategic innovations

The Indian fertilizer industry is on a robust growth trajectory, expected to reach US$ 16.58 billion (Rs. 1.38 lakh crore) by 2032, with a CAGR of 4.2% from 2024 to 2032, according to IMARC Group. In 2023, the market size was US$ 11.32 billion (Rs. 94,210 crore), driven by increased agricultural demands and strategic governmental interventions. FY24 saw fertilizer production at 45.2 million tonnes, reflecting successful policies. India, the world's second-largest producer of fruits and vegetables, benefits from government initiatives like PM-KISAN and PM-Garib Kalyan Yojana, which enhance farmer liquidity and fertilizer investment, supported by the United Nations Development Programme for their contributions to food security.

The geopolitical landscape and domestic production focus, particularly on nano-liquid urea, have influenced India's fertilizer market. Union Minister of Health and Family Welfare Mr. Mansukh Mandaviya announced plans to increase nano liquid urea plants to 13 by 2025, producing 44 crore bottles of 500 ml nano urea and DAP. Aligning with Atmanirbhar Bharat, urea imports declined by 7%, DAP by 22%, and NPKs by 21% in FY24. The government mandates 100% Neem coating on subsidized urea to enhance efficiency and prevent misuse. Climate change challenges, addressed by the National Mission for Sustainable Agriculture (NMSA) and initiatives like PKVY, promote organic farming and continuous innovation in fertilizers.

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