Blitz Bureau
NEW DELHI: India’s paints and coatings industry is projected to grow at a compound annual growth rate (CAGR) of 9.4 per cent till 2030, reaching nearly $16.5 billion in the next five years, up from $9.6 billion in 2024, a report said on December 16. The report from Rubix Data Sciences (Rubix) said that the robust growth is supported by rapid urbanisation, rising disposable incomes, sustained infrastructure development and expanding housing construction.
Further, India’s position as the world’s third‑largest automobile market, and its efforts to reach top spot within five years, is also creating demand for automotive and industrial coatings, the report noted. The Central Government’s housing schemes, such as Pradhan Mantri Awas Yojana – Urban, and Pradhan Mantri Awas Yojana – Gramin, are also expected to be major growth drivers.
However, the report added that FY25 marked a turning point for the industry, exposing competitive pressure, margin stress and structural challenges across the value chain. Leading paint manufacturers faced compressed margins, softer urban demand and intensified price‑based competition, as consumers increasingly traded down to value offerings.
Aggressive discounting and higher dealer incentives weighed on profitability, signalling a shift from a historically stable, brand-led market to a far more contested competitive environment, the report noted. Smaller players — nearly 3,000 unorganised manufacturers — struggled with rising compliance costs, limited R& D investment, weak marketing and distribution budgets and made their survival difficult.
