India Paints and Coatings Market Assessment, By Resin, By Technology, By End-user Industry, By Region, Opportunities and Forecast, FY2019-FY2033F

India paints and coatings market is expected to grow at a CAGR of 8.81% during the forecast period FY2026-FY2033. The market size will grow from USD 13.91 billion in FY2025 to USD 27.33 billion in FY2033.

Indian paints and coatings industry is witnessing high growth fueled by widespread infrastructure development and urbanization activities. The government's ambitious Smart City Mission for 100 cities and other infrastructure development initiatives have generated a huge demand for architectural coatings. These developments and a growing urban population and rising disposable incomes have revolutionized the market landscape. The shift in the manufacturing sector creates new applications for industrial coating. India is a global manufacturing hub. Indian Railways is one of the largest networks in the world by size and has a total track length of 121,407 km or 75,439 miles, and the route extends 67,368 km. Indian Railways transports about 8.26 billion passengers every year and transports 1.16 billion tons of freight.

In November 2024, Grasim Industries Ltd, part of the Aditya Birla Group, opened its fourth paint manufacturing facility in Chamarajanagar, Karnataka, making it the second-largest decorative paints manufacturer in India. The new plant adds 230 MLPA capacity, bringing the company's total manufacturing capacity to 866 MLPA. The facility will produce water-based paints, enamel paints, and wood finish paints, featuring zero liquid discharge and fourth-generation manufacturing technology. The company has invested approximately USD 1000 million of its planned USD 1200 million in the paints business. Birla Opus Paints, launched in 2024, has introduced 129 products with over 900 SKUs across various categories and serves over 4,300 towns across India.

Rapid Urbanization and Infrastructure Development

The paints and coatings market in India is witnessing robust growth driven by rapid urbanization and widespread infrastructure growth. The rise in the urban population drives the demand for residential and commercial areas, which is driven by government policies such as the Smart Cities Mission and the Housing for All to enhance city living and encourage the construction process nationwide. Additionally, architectural coatings, which are critical to new buildings and refurbishment processes, have seen an exponential rise in demand. For instance, in the Union Budget 2023-24, the Indian government allocated USD 973 million for the Smart Cities Mission. Under the Interim Budget, the capital investment outlay for infrastructure has increased by 11.1% to USD 133.86 billion, which would be 3.4 % of India's GDP. According to the ministry, in January 2023, work orders were issued for 7,804 Smart Cities Mission projects valued at USD 21.9 billion. Furthermore, the achievement of 67.22% of Smart Cities Mission projects worth USD 11.6 billion guarantees a recurring requirement for maintenance and renovation, further stimulating the demand for paints and coatings. These government programs and economic development promote the adoption of sophisticated and eco-friendly paint technologies, including low-VOC and green coatings, in line with international sustainability trends.

Water-Based Paints Witnessing the Fastest Growth

Waterborne paints in India are undergoing substantial growth fueled by rising environmental concerns, urbanization, and changing consumer behavior. A noticeable market shift has been witnessed as manufacturers started choosing water-based paints over solvent-based mainly because of the increasing cost of crude oil and its derivatives affecting the production of solvent-based paints. Meanwhile, water-based paints are relatively less affected by crude oil price fluctuations and offer better margins. In addition, the growing demand for green products has boosted the popularity of water-based paints that emit less VOCs and hence remain in tune with consumer sentiments for sustainability. Prominent market players like Asian Paints and Kansai Nerolac are investing in new water-based products to their portfolio to meet the growing demand.

For instance, in January 2023, Asian Paint sanctioned an investment of USD 235 million in a new waterborne paint manufacturing facility in Madhya Pradesh with an annual capacity of 400,000 kiloliters. The date for commissioning this facility would be three years after the land acquisition date. Eco-friendly paints and intermediates shall be manufactured from this plant using the latest manufacturing technology. The company sells and distributes paints, manufacturing, products, and coatings for home decor, services, and bath fittings. During the July-September quarter of FY2023, net profit reached a high of 31.3%, and net sales rose to USD 990 million.

Northern Region Dominating the Paints and Coatings Market

The northern region of India is emerging as a robust player in the paints and coatings industry because of the large-scale infrastructure development and urbanization. Uttar Pradesh, Haryana, and Punjab are the top states spearheading this boom with high rates of construction activity that drive demand for decorative painting in residential, commercial, and industrial establishments. In addition, the expansion of the automotive segment in the region also drives the market for industrial coatings to a large degree. Government initiatives such as the Smart Cities Mission further drive market growth by spending heavily on infrastructure development. The economic development of the northern region is also being driven by increasing awareness and desire of consumers to use sustainable and advanced paint technology, such as low-VOC and green paint, following the Indian trend. The convergence of these factors ensures that North India is a major base for the paints and coatings industry and further solidifies its leadership in the market. The expansion of the region not only reflects the prevailing market scenario but also sets the stage for future advancements and innovation in the paints and coatings sector.

In March 2023, Berger Paints India Limited, on its 100th anniversary of business in India, declared an investment of about USD 120 million for commissioning its biggest production facility in Uttar Pradesh, India. The new facility has a total installed capacity of 33,000 KL/MT per month, which includes 15,000 KL/MT of water-based paint and 4,800 KL/MT of solvent-based paint, besides construction chemicals and putty. The plant is equipped for producing a vast range of products with zero-liquid discharged plant and can run entirely on solar power.

Future Market Scenario (FY2026-FY2033F)

The growing urbanization of India translates into a constant demand for new residential, industrial, and commercial buildings. Infrastructure such as highways, bridges, and smart cities will all require enormous amounts of paint and coating for protective reasons as well as aesthetics. Government spending on infrastructure continues to propel growth in the industry, ensuring a constant and consistent growth curve for the industry.

As environmental issues expand and there are more stringent emissions controls, the demand for low-VOC (volatile organic compound) and environmentally friendly paints and coatings will likely expand. Companies and consumers alike are becoming more conscious of the environmental impact of their activities. This shift towards sustainable products will force manufacturers to create greener products, leading to a large market for environmentally friendly coatings.

The coatings and paints industry will also experience technological advancements, including developing waterborne, powder, and UV-cured coatings. Compared to traditional solvent-based coatings, these technologies offer improved performance, durability, and environmental benefits. Applications of intelligent coatings that self-heal, change color, or possess antimicrobial properties will also enhance market growth, enabling a broad spectrum of industrial and consumer uses.

The growth of key industrial sectors such as automotive, aerospace, marine, and electronics will drive the demand for specialized coatings. These industries require high-performance coatings that have protection against corrosion, wear, and the environment. The growth of these industries will increase the demand for high-performance coatings that give high quality and performance standards, and new market opportunities will be generated.

Key Players Landscape and Outlook

The leading players in the Indian paints and coatings market are expected to benefit significantly from the emerging opportunities driven by the rapidly advancing urbanization, development of infrastructure, and increasing demand for eco-friendly products. Such leading players in the industry are also turning towards increased research and developments to innovate and present innovative, eco-friendly paint technologies, such as low-VOC and waterborne coatings. Besides, strategic investments in increasing manufacturing capacities and strengthening distribution networks are facilitating these companies' service to various residential, commercial, and industrial segments. These market leaders are able to sustain themselves in the fast-changing Indian paints and coatings scenario by offering their products according to global trends and customer requirements.

In March 2024, Pidilite Industries Limited ventured into the decorative paint market with the debut of Haisha Paints. The venture is a part of the company's renewal into the adhesive and home improvement sector. The company launched Haisha paint in the selected region, which was designed to bridge crucial gaps and meet specific pricing requirements within the decorative paints segment. In collaboration with Sideways, the campaign for Haisha Paints embraces a unique.

In February 2024, the Aditya Birla Group subsidiary of Grasim Industries Ltd launched 'Birla Opus', offering a range of high-quality products in the decorative paints segment. The launch of Birla Opus marks the company's entry into the fast-growing decorative paint market. With an investment of USD 1 billion, the company is building six state-of-the-art plants across India. For the total of six fully automated production plants with a total production capacity of 1,334 million liters per annum.