India has become the third-largest exporter of agrochemicals in the world. According to a joint report by the Agrochemical Federation of India (ACFI) and Deloitte, exports reached USD 3.3 billion in FY25, a sharp increase from USD 1.3 billion in FY15. Only China and the US are ahead.

Call for Policy Push

The report highlights that India's strong evolution in this sector requires constant policy support. ACFI has insisted the government to launch the PLI scheme and provide tax holidays. They say these measures will help reduce dependence on imports of key molecules and promote large-scale manufacturing within the country.

The industry body has also stressed the requirement for public-private partnerships in research and development. Strong support for MSMEs will also be important to make India globally competitive in this field.

Domestic Market Trends

India's domestic agrochemical market stood at Rs. 69,000 crore (USD 7.82 billion) in FY24. Exports contributed 51% of this, while 49% came from domestic constructions.

Multi-source generics control the space, accounting for 80% of the market, and this share is expected to rise further as more products go off-patent worldwide.

In FY24, pesticides led the market with 41%, followed by herbicides at 22% and fungicides at 21%. Herbicides, in particular, have been the fastest rising category with a CAGR of 10% between FY21 and FY24.

Eight crops consisting rice, cotton, wheat, soybean, chillies, grapes, sugarcane, and gram, make up nearly 65% of India’s domestic demand. States like Maharashtra, Goa, Andhra Pradesh, Telangana, and Madhya Pradesh account for the highest consumption.

India's rise as the third largest agrochemical exporter indicates its emerging role in global agriculture. With the appropriate policy measures, innovation in R&D and support for MSMEs, the sector can further strengthen its position and drive sustainable growth.