Indian agrochemical companies are making huge investments, export growth exceeds 31% in 2021 H1

From 2019 to 2024, the growth rate of the global agrochemical market is expected to be 6.6%, and the market will reach USD 86 billion by 2024. The Indian agrochemical market will also maintain a similar growth rate, and the market is expected to reach USD 5.7 billion by 2024. The growth rate of Indian exports is also surging. In the first half of 2021, agrochemical exports have grown by 31% year-on-year.

India’s market growth is with great promise, and companies are also increasing investment, hoping to expand export markets. In the 2021 China Pesticide Exporting Workshop, Rohit Nagraj, Sr. Research Analyst from Emkay Global Financial Services Ltd. made a presentation on Indian agrochemical market data and corporate investment trends. His content includes:

- Global Agrochemical Market – Growth to Accelerate In Coming Years

- India Agrochemical Market – To Outpace Global Growth

- Rising Indian Agrochem Imports

- Dependency on Chinese Imports Still High

- Indian Agrochem Exports Surging Too

- Brazil Remains The Largest Exports Destination

- Chinese Agrochem Production Declines While That Of India’s Rises

- Agrochem – Capital Investments

- Agrochem – Recent Projects/ Capex Announcements By Indian Companies

- Agrochem – Going Off-patent

If you want to know detail about how this platform works, please click to watch the presentation video.

Make Virtual Participation of 2021 China Pesticide Exporting Workshop to see all the presentation video

2019 data shows that India's domestic sales and exports are almost equal, both at about USD 2.1 billion. The export business of India's agrochemical market will grow more rapidly. Both large and medium-sized Indian companies have exported pesticide technicals and formulations, which are sold to countries all over the world. In 2024, the export market is expected to increase to 3.1 billion U.S. dollars, while the domestic market is expected to increase to 2.6 billion U.S. dollars.

China is the source of India's most important imports of key raw materials. China accounts for nearly 50% of India’s raw material imports, followed by the United States with 10%, and then other countries. Data shows that in the past 10 years, India’s imports have been increasing and its dependence on Chinese imports has increased. In order to alleviate this dependence, many Indian companies have tried to move up the product chain.

India's exports of agrochemical have soared, which represents the future trend. Since 2018, the export volume has been increasing, and the growth in the first half of 2021 has reached almost 31%. Since 2016, the amount and quantity have increased in the past 6 years.

What are the main export markets for India? China is India’s largest source of imports, while China’s imports from India account for only 3%. Brazil occupies a quarter of India’s export market, and more and more companies are participating in the competition and paying attention to this market. Brazil has huge agricultural potential and can accommodate more companies.

There are 11 listed companies in India, except for UPL, because it is a global company. The data shows that in the past five years, investment activities in the Indian industry have increased significantly, which is reflected in the growth of production, exports, and financial growth. At this time, China's production capacity is limited, and Indian counterparts benefit from it. They carry out investment activities, increase production capacity, and occupy the international market. In the past four or five years, India’s domestic industry investment has been surging. 

Data shows that investment activities have increased and production capacity has increased. In 2021, there has been a decline due to the Covid-19, but investment activities have not stopped or slowed down. With the expectation of exports, these Indian companies announced that their future investment will exceed Rs 18 billion. Compared with their investment five years ago, the investment plans announced by many companies are a leap. The Indian agrochemical industry is making huge investments.

If you have more questions regarding India companies' investment activities, please leave the question under the presentation video page and interact with the expert Rohit Nagraj.