India’s Agrochemical Exports Surge to $3.3 Billion, Becoming Global Powerhouse

India’s agrochemical exports have nearly tripled in the last decade. They reached a record $3.3 billion in the 2024-25 fiscal year. This growth solidifies India’s position as the world’s third-largest agrochemical exporter.

The data comes from a new report by the Agro Chem Federation of India and Deloitte. The report highlights both the sector’s success and its ongoing challenges with import dependency.

Industry Leaders Call for Government Support to Boost Domestic Production

The industry remains heavily reliant on imported raw materials. Key technical ingredients are often sourced from China. This reliance creates significant strategic risks for supply chain stability.

According to the report, geopolitical tensions or trade restrictions could disrupt supplies. Such disruptions would lead to critical shortages and price spikes. Domestic production of high-value ingredients is limited due to technological and cost barriers.

ACFI has urged the government to introduce a Production-Linked Incentive (PLI) scheme. This would specifically target critical active ingredients currently imported. The goal is to foster greater self-reliance and strengthen the global supply chain.

Building a Sustainable Future for Indian Agriculture

The push for growth is paired with a focus on sustainability. Dr. Praveen Kumar Singh, Agriculture Commissioner, emphasized the need for an output-outcome approach. He highlighted the importance of climate-resistant solutions and the health of the farming community.

Industry leaders also proposed establishing specialized agrochemical manufacturing parks. These hubs would encourage collaborative research and development. Strengthening MSMEs operating in the sector is another key recommendation for long-term growth.

India’s agrochemical sector is poised for continued expansion. Strategic government policies could further accelerate this growth. Reducing import dependence is crucial for securing India’s role in the global food supply chain.

Thought you’d like to know

What is India’s current rank in global agrochemical exports?

India is now the third-largest exporter of agrochemicals worldwide. It ranks only behind China and the United States. This is a significant rise from its position a decade ago.

Why is the industry concerned about imports?

The sector relies heavily on imported technical ingredients from China. This makes it vulnerable to supply disruptions from geopolitical issues or trade wars. Such disruptions could cause serious shortages and price increases.

What solutions has ACFI proposed?

ACFI recommends a PLI scheme to boost domestic manufacturing of key inputs. It also suggests creating tax holidays and establishing dedicated manufacturing hubs. These steps aim to reduce strategic risks and build self-reliance.

How important is sustainability to the sector?

Sustainability is a core focus alongside growth. Officials are pushing for a shift towards integrated pest management and eco-friendly products. The health of farmers and the environment is a top priority.

Trusted Sources

Agro Chem Federation of India (ACFI), Deloitte India.