India's agrochemical industry is experiencing unprecedented growth, presenting immense opportunities for development. As the 4th largest producer of agrochemicals globally and ranking 4th in crop protection chemical production, India's agrochemical market was projected to reach US$ 7.5 billion (INR 532 billion) by FY19, with exports contributing approximately 50% of the crop protection industry's value (Source: IBEF, February 2018). Revenue growth for Indian agrochemical companies was estimated to rise by 12% to 14% between 2017-2019 (Source: Religare Institutional Research Report, January 2017).
The seed market in India, valued at US$ 3.6 billion (INR 256 billion) in 2017, and the fertilizer market, worth INR 4675 billion, underline a thriving agricultural sector. These figures reflect the steady growth in agrochemical production and the subsequent rise in rural purchasing power.
Rural-focused advertising and promotions by agri-input companies accounted for 2.5% to 3% of their revenues, with the sector’s potential revenue estimated at approximately INR 23.6 billion in 2020. This growth is fueled by advancements in agri-technologies, improved crop yields, and better infrastructure for markets, storage, and transportation. The involvement of large corporations, such as Adani in apple procurement from Kashmir and Himachal Pradesh, and private firms in basmati rice procurement in Punjab and Haryana, has further strengthened agricultural productivity and market efficiency.