India’s Paints Industry Set to Touch $16.5 Billion by 2030

New Delhi: India’s paints and coatings industry is projected to grow at a compound annual growth rate (CAGR) of 9.4 per cent through 2030, reaching nearly $16.5 billion within the next five years, up from $9.6 billion in 2024, according to a report released on Tuesday.

The report by Rubix Data Sciences (Rubix) attributes this strong growth outlook to rapid urbanisation, rising disposable incomes, sustained infrastructure development, and an expansion in housing construction across the country.

India’s status as the world’s third-largest automobile market—and its ambition to become the largest within the next five years—is also expected to significantly boost demand for automotive and industrial coatings. In addition, government-led housing initiatives such as the Pradhan Mantri Awas Yojana (Urban and Gramin) are anticipated to play a key role in driving industry growth.

However, the report noted that FY25 marked a turning point for the sector, highlighting rising competitive pressure, margin stress, and structural challenges across the value chain. Leading paint manufacturers faced compressed margins, softer demand in urban markets, and heightened price-based competition as consumers increasingly shifted towards value-oriented products.

Aggressive discounting and higher dealer incentives further weighed on profitability, signalling a transition from a traditionally stable, brand-driven market to a far more competitive landscape. Smaller players—nearly 3,000 unorganised manufacturers—were particularly impacted, struggling with rising compliance costs, limited investments in research and development, and weak marketing and distribution capabilities.

The industry has also witnessed disruption from new entrants and consolidation among larger players. Imports of paints, especially advanced industrial coatings and critical raw materials such as titanium dioxide and specialised resins, stood at $219 million in the first half of FY26—over three times higher than exports, which amounted to $61 million during the same period.

Data shows that India largely exports paints to developing markets while importing advanced coatings from developed economies. Solvent-based products accounted for 84 per cent of exports and 75 per cent of imports, supported by strong demand from the industrial and automotive sectors, even as eco-friendly, low-VOC paints continue to gain traction.

The report concluded that the shift towards sustainable, low-VOC, and high-performance coatings—along with increasing adoption of advanced materials and nanotechnology—is expected to reshape product portfolios and redefine competitive strategies within the industry.

—With inputs from IANS