India Paints Industry Projected To Cross 16.5 Billion Dollars By 2030
India’s paints industry is set for robust growth, projected to reach $16.5 billion by 2030 from $9.6 billion in 2024, reflecting a compound annual growth rate of 9.4 per cent. Driven by rapid urbanisation, rising household incomes, housing schemes, and expanding automotive and industrial demand, the sector is entering a transformative phase with new competitive and sustainability challenges.
Urban housing initiatives such as Pradhan Mantri Awas Yojana – Urban and Gramin are significantly influencing the paints market. By expanding residential construction across towns and cities, these programmes are creating steady demand for decorative and protective coatings. Industry analysts highlight that India’s position as the world’s third-largest automobile market, with ambitions to become number one within five years, is further boosting demand for automotive and industrial paints, particularly advanced coatings and high-performance materials.Yet, FY25 marked a turning point, exposing structural pressures across the value chain. Leading paint manufacturers are facing compressed margins, softer urban demand, and intensifying price-based competition as consumers increasingly trade down to value offerings. Aggressive discounting and higher dealer incentives have weighed on profitability, signalling a shift from a historically stable, brand-driven market to a more contested, competitive landscape.
Smaller players, including nearly 3,000 unorganised manufacturers, are struggling with rising compliance costs, limited research and development budgets, and constrained marketing and distribution networks. Their survival is becoming increasingly difficult, particularly as larger players consolidate and new entrants disrupt traditional market structures. Imports of critical raw materials such as titanium dioxide and specialised resins reached $219 million in the first half of FY26, over three times higher than exports, reflecting India’s dependence on developed economies for advanced coatings.Solvent-based products remain dominant, constituting 84 per cent of exports and 75 per cent of imports, supported by strong industrial and automotive demand. Simultaneously, eco-friendly, low-VOC paints are gaining ground, with manufacturers gradually integrating sustainable technologies into product portfolios. Adoption of advanced materials and nanotechnology is expected to redefine competitive strategies, offering environmentally conscious alternatives without compromising performance.
As India’s cities continue to grow, the paints industry stands at the intersection of opportunity and challenge. Market leaders that balance affordability, innovation, and sustainability are likely to gain a strategic advantage, supporting broader urban resilience and zero-carbon development goals while reshaping the sector for a more inclusive, future-ready urban economy.
