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India’s paints and coatings industry, which was valued at about $9.6 billion in 2024, is projected to grow at a CAGR of 9.4% till 2030, and is likely to reach approximately $16.5 billion in the next five years, says Rubix Data Sciences’ latest Industry Insights.While long-term demand drivers remain strong, FY2025 marked a turning point for the industry, exposing rising competitive pressure, margin stress, and structural challenges across the value chain.

Growth in the sector continues to be supported by rapid urbanisation, rising disposable incomes, sustained infrastructure development, and expanding housing construction. India’s position as the world’s third-largest automobile market,combined with its ambition to reach the top spot within five years,also createssustained demand for automotive and industrial coatings, strengthening the medium-term outlook.

However, FY2025 proved particularly challenging, even for market leaders. 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 pressure is especially acute for the nearly 3,000 small and unorganised paint manufacturers operating across the country. Rising compliance costs linked to environmental and low-VOC regulations, limited ability to invest in R&D and product innovation, and the absence of meaningful marketing and distribution budgets are making survival increasingly difficult for smaller players. For many of these manufacturers, sustaining operations amid regulatory, technological, and competitive pressures has become a challenge, and growth is a far cry.

At the same time, the industry has witnessed significant disruption from new entrants and consolidation. In the last few years, the entry of players such as Grasim Industries’ Birla Opus, JSW Paints, and Pidilite’s Haisha Paints, along with consolidation moves, including JSW Paints’ acquisition of Akzo Nobel India, Astral’s purchase of Gem Paints, and JK Cement’s acquisition of Acro Paints, has intensified rivalry. These developments have accelerated capacity expansion, reshaped dealer dynamics, and heightened pricing pressure across both incumbents and smaller manufacturers.

From a trade perspective, India continues to remain a net importer of paints, reflecting domestic dependence on advanced industrial coatings and critical raw materials such as titanium dioxide and specialised resins. Imports stood at $219 million in the first half of FY2026, 3.3 times larger than the exports of $61 million during the same period. India primarily exports paints to developing markets while importing advanced coatings from developed economies. Solvent-based products continue to dominate, making up 84% of exports and 75% of imports, supported by strong industrial and automotive demand, even as eco-friendly, low-VOC paints gain ground.While trade is not the primary driver of industry growth, this imbalance highlights gaps in high-performance coating capabilities and underlines the importance of technology and scale in the evolving market.

However, strong fundamentals position the industry for a robust recovery in the medium to long term. 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.At the same time, the shift towards eco-friendly, low-VOC, and high-performance coatings, along with growing adoption of advanced materials and nanotechnology, is expected to redefine product portfolios and competitive strategies.

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