New Delhi [India]: India’s agrochemical industry is experiencing a surge in demand from Europe, as regulatory changes increasingly favor Indian exports, according to a recent report by Nuvama.
The report highlights that India’s small-molecule pharmaceutical research industry is also expanding, benefiting from evolving market dynamics in Europe.
“India’s agrochemical industry too is gaining traction in Europe, supported by a regulatory environment that increasingly favours Indian exports,” the report stated.
Europe’s Declining Chemical Industry Benefits India
Europe’s competitive edge in the chemical sector is gradually eroding, opening opportunities for India to establish itself as a dominant supplier in fine chemicals, agrochemicals, and specialty chemicals.
Several key factors are driving this shift:
- Government incentives and lower production costs in India
- Multinational companies relocating their manufacturing to India
- Europe’s rising dependence on chemical imports from India and China
Massive Chemical Plant Closures in Europe
The report noted a significant reduction in Europe’s chemical manufacturing capacity, with 11 million tons of capacity shut down in 2023-24 alone.
Key findings:
- More than 21 major chemical plants closed in Europe last year
- Tenfold increase in plant shutdowns compared to historical averages
- Once closed, these plants do not reopen, leading to permanent industrial decline
India Poised to Dominate the Global Chemical Market
With Europe transitioning from a manufacturing hub to an import-dependent region, India is stepping in as a major global supplier.
India’s cost-effective production, favorable government policies, and expanding capacity place it in a strong position to increase its global market share in agrochemicals and specialty chemicals.
As Europe continues its shift towards net chemical imports, Indian companies have a significant opportunity to capitalize on this changing landscape.