By: ICN Bureau
Last updated : December 01, 2025 9:30 am
The sector grapples with raw material dependency, regulatory hurdles, and the urgent need for deeper R&D and collaboration
India’s agrochemical industry is at a pivotal turning point, strengthening its global position while navigating rapid shifts in climate, regulation, and technology. As the world’s fourth-largest producer and a fast-growing export hub, the sector is powered by a strong manufacturing base and rising demand for advanced, sustainable crop-protection solutions. Yet challenges such as raw material dependence on China, complex registrations, rising logistics costs, and low R&D investment continue to shape the landscape.
Industry stalwarts discussed the latest scenario at the inaugural session of AgroChem Summit 2025 organised by the Indian Chemical News (ICN) on November 19, 2025, in New Delhi.
The session titled “Positioning India as a Global Manufacturing and Export Hub for Agrochemicals” brought together some of the most influential voices from the industry.
Welcoming the speakers and delegates, Pravin Prashant, Executive Editor, ICN, outlined the global and domestic landscape of India’s agrochemical sector.
“The global agrochemical market stands at USD 287 billion in 2024 and is projected to reach USD 308 billion in 2025, with Asia Pacific leading at USD 94.7 billion. India’s market is valued at USD 10.6 billion with an 8.7% year-on-year growth, while Japan and South Korea continue to outperform India despite their smaller size, highlighting the need to move up the value chain and innovate. Domestically, the market is USD 7.82 billion, with formulations holding a 49% share and exports contributing 51%. Exports are expected to reach USD 3.3 billion in FY25, nearly triple the USD 1.3 billion recorded a decade ago, driven by strong momentum in herbicides, which have grown at 20% CAGR since FY20.”
Prashant cautioned that India’s progress is constrained by heavy dependence on China for 50% of its technical-grade inputs, rising raw-material and logistics costs, and a slow, complex registration process that hampers innovation. “The registration process for new agrochemical molecules is complex, costly, and time-consuming, limiting innovation. Our R&D investment is only 1–2% of turnover, much lower than the 5–10% invested by companies in developed countries. This affects our ability to develop new molecules or specialised products for specific crops. Environmental concerns including soil degradation, water contamination, and air pollution also add pressure on the sector,” he added.
Deepak Shah, Chairman, SML, emphasized India’s ambition to emerge as a global hub for R&D and agrochemical innovation. He noted that India is already on a strong trajectory, with exports touching USD 5.5 billion.
“While some companies rely largely on imports due to limited manufacturing capacity, the core of the Indian industry is focused on robust manufacturing and exports—and that is encouraging. We should take pride in the fact that the Indian industry contributes nearly 85% of total exports. Out of approximately Rs 50,000 crore in exports, nearly Rs 42,000 crore is driven by Indian manufacturers. Our domestic market is also strong at USD 5–5.5 billion, and data suggests it may grow to nearly USD 9 billion within the next four years. Now, to become the global leader, competing with China will be challenging. China enjoys several advantages that we currently do not. Even today, China dominates global agrochemical or as we now call it, plant medicine exports. So rather than trying to replicate their model outright, we should focus on building on our own strengths,” opined Shah.
Shah further stressed the need for increased investment in research. “We began formulation research 17–18 years ago and have since registered the first 93 products in India. We have introduced innovative formulation technologies such as WDG and SC. We have made meaningful progress in developing improved formulations. Considerable work has also been done in technicals, especially through reverse engineering after patent expiry. We strongly believe that once a patent expires, data protection should not continue, because it restricts Indian manufacturers and undermines competitiveness. The good news is that at least five Indian companies have already begun research on new molecules. If five can do it, twenty-five can do it too. And this is how we shift from being dependent on western technologies to developing our own, just as India has successfully done in other sectors,” added Shah.
Natwarlal M. Patel, Co-founder, Meghmani Organics, stressed that sustainability must be at the core of India’s growth strategy.
“Sustainability has become a critical priority. China began investing heavily in sustainability more than a decade ago, and today they are reaping the benefits. If India is currently the world’s third-largest agrochemical manufacturer and aspires to become the second-largest within the next five years, we must integrate sustainability deeply into our strategy, across our balance sheets, productivity models, and operations. In today’s global environment, resource efficiency has become essential. Reverse engineering continues to play a major role, but we must also optimize production by improving raw material consumption, energy usage, and water efficiency, while reducing effluent output. These improvements not only enhance sustainability but also reduce costs, making us more competitive in international markets. Despite external criticism directed at the agrochemical sector, the industry has been working diligently on sustainability initiatives. We also have a strong talent pool. Earlier, salaries in R&D were not competitive, but that has changed. Today, Indian companies are investing significantly not only in marketing and sales talent but also in R&D talent. Retaining skilled professionals in manufacturing and research will help India strengthen its international position,” said Patel.
Patel also underscored the agricultural reality driving long-term demand. “Beyond market numbers and export potential, there is a broader agricultural reality to consider. Productive land is shrinking globally due to rapid urbanization. Yet the world’s population continues to grow, now over 7.5 billion globally and 1.4 billion in India. Since our arable land remains constant, productivity must increase. This requires three essentials: good seeds, good agrochemicals, and healthy soil. Agriculture universities are doing commendable work, and the industry is continuously introducing new technologies to support farmers. Farmers are now able to grow two or even three crops a year, supported by better seeds. As agricultural incomes rise, farmers are increasingly investing in crop protection and FMCG inputs. This is strengthening domestic demand and building a more resilient future for the industry,” Shah added further.
Pradip Dave, President, PMFAI, emphasized that India’s agrochemical sector is now a vital pillar of the nation’s agricultural progress, supplying farmers with essential technologies to safeguard crops.
“Our agrochemical industry is today a vital contributor to India’s agricultural sector. It provides farmers with essential tools and technologies to protect crops from pests and diseases. We are a diverse and dynamic sector, comprising manufacturers, formulation producers, and distributors of a wide range of agrochemical and biological crop protection products. A key priority for us is to position India as a major global sourcing hub for agrochemicals. To achieve this, the Indian crop protection sector is undergoing significant transformation driven by R&D, innovation, and backward integration. Leading companies are increasingly focused on maximizing indigenous production of technical-grade agrochemicals and intermediates, an essential step for long-term resilience and reduced import dependency. As the leading national association, we are closely collaborating with CSIR and ICAR on mission-mode projects aimed at developing new molecules, especially those nearing patent expiry. Such long-term scientific partnerships are crucial to strengthening the industry and directly supporting the Indian farming community, while accelerating our journey toward becoming a global sourcing powerhouse,” mentioned Dave.
Dave highlighted that sustained investments in R&D have already led to safer, more effective, and economically viable formulations. “Over the years, the industry has demonstrated strong growth and innovation, with companies making substantial investments in R&D. These efforts have led to the development of new and improved formulations that are more effective, economically viable, and safer for human health. Policy measures supporting indigenous manufacturing—particularly the registration provisions under Sections 93 and 94 of the Insecticides Act, have also played an instrumental role in driving progress. These advancements have empowered farmers to enhance productivity and adopt more sustainable agricultural practices,” added Dave.
Dr. Manish Singh, Head – New Product Development, Crop Protection Business, Godrej Agrovet, pointed out India’s inherent strengths: deep chemistry expertise, strong technical talent, cost-competitive manufacturing, and a proven export record.
“India today stands at a critical point in its journey to become a global manufacturing and export hub for agrochemicals. With an industry size of nearly 11 billion US dollars and the position of the world’s third-largest exporter, our foundation is strong. Much of this context has already been explained, so I will focus on the key enablers that can help us accelerate further. To begin with, India’s strengths are clear. We have deep technical capabilities, a large pool of skilled scientific talent, competitive manufacturing, and a proven export track record. At the same time, global supply chains are increasingly diversifying beyond China, and India is being seen as a dependable partner. We also have strong access to high-growth markets in the US, Brazil, Latin America, Southeast Asia, and Africa. With strong chemistry capabilities and supportive global conditions, India is in a unique position to scale significantly in the coming years,” said Dr Singh.
Drawing on his long career in research, Singh underlined that R&D and innovation will ultimately determine whether India can move from being primarily cost-efficient to becoming a true global leader. “Strengthening our discovery pipelines, increasing investments in research, and enabling the development of next-generation molecules and products will be essential. Although many companies have begun moving beyond basic formulations into genuine discovery work, India still needs greater support in early-stage innovation. A National Innovation Fund can play an important role in catalysing this progress. Technology and sustainability will shape the next phase of growth. Advancements such as AI-driven molecule prediction, precision agronomy, and greener chemistry practices will define the industry over the next decade,” Dr Singh added further.
Chandrashekhar Shukla, President – Sales & Marketing, Safex Chemicals India, reflected on the sector’s dramatic shift over the past few years. He urged the sector to examine whether this transformation was deliberate or shaped by global circumstances.
“I have been part of this industry for more than three decades, and I clearly remember a time, barely six or seven years ago, when our export figures were lower than our domestic numbers. Today, exports stand at nearly Rs 45,000 crore and have surpassed domestic sales. This is a remarkable achievement and a moment to applaud all our exporters who have contributed to this growth. Intent is foundational. If our intent is superficial, if we only offer lip service and remain opportunistic, the sustainability will be impossible. Although regulators have taken steps—such as speeding up export registrations, India still lacks a structured, coordinated platform that can drive long-term strategic progress. Collaboration, the second pillar, is essential to compete with China’s scale and readiness. Rising costs of R&D and reverse engineering cannot be borne by individual companies alone. While India has strong academic institutions producing large volumes of research, much of it remains disconnected from industry needs. Credibility, however, is the most crucial pillar. Without trust, global markets will not see India as a dependable manufacturing hub,” said Shukla.
Shukla cited the example of his organization developing and patenting a new molecule, launching India’s first home-use agrochemical product of its kind. “We invested in deep research, innovated our own molecule, received a patent, and launched India’s first home-use agrochemical product of its kind. It is marketed by large organisations and exported to 21 countries. We even established a CDMO plant overseas. This shows that Indian companies are capable of creating world-class innovation—not just products, but technology and manufacturing excellence. With all this said, what matters most is that our intent must be clear. We must work systematically and within defined timelines. We must embrace collaboration, especially in research and reverse engineering. And we must ensure that credibility is built into every step of our process. If we can do this together, India will not only maintain its position—it will lead the global agrochemical market in the years ahead,” he concluded.
The AgroChem Summit 2025 themed ‘Driving Sustainability, Balancing Productivity’ was supported as Gold Partners by Humane World for Animals, Godrej Agrovet, Safex Chemicals, and SML.
The industry association partners included BASAI, PMFAI, ACFI, CCFI, and Croplife India.