The Indian agrochemical industry is poised for significant expansion, with exports potentially exceeding ₹80,000 crore over the next four years. This projection comes from a report titled "Indian Agrochemical Industry: The Story, the Challenges, the Aspirations," released during the 7th Annual General Meeting of the Agro Chem Federation of India (ACFI). The report highlights that the quality and affordability of Indian agrochemicals have made them popular among farmers in over 130 countries. With appropriate government support and facilities, the sector could experience substantial growth in exports.
Industry experts have called on the government to enhance support for agrochemical exports by simplifying licensing processes, improving infrastructure for storage and sales, and promoting the production of biopesticides. They also recommended reducing GST on agrochemicals from 18% to 5% and increasing collaboration with countries that have more flexible Maximum Residue Limits (MRL). Additionally, the report suggests that the Production-Linked Incentive (PLI) scheme could attract ₹10,000 to ₹15,000 crore in investments over the next five years, further boosting export growth.
Parikshit Mundhra, Chairman of ACFI, emphasized the need for transforming current challenges—such as dependence on generic molecules and complex registration processes—into opportunities under the "Make in India" initiative. Mundhra believes that the agrochemical sector could play a crucial role in enhancing agricultural productivity and achieving India's goal of a $5 trillion economy by 2025.
According to the report, while the agriculture sector is currently growing at a compound annual growth rate (CAGR) of 3.8% to 4%, achieving the $5 trillion economy goal will require a CAGR of 9.3% in agriculture and allied sectors.
Ultimately, the agrochemical industry's growth will be driven by three key factors: improving trade and marketing, increasing domestic production and R&D, and establishing a supportive policy framework. These efforts are expected to elevate the industry to a global leadership position and foster sustainable agricultural development.
