New Delhi: India’s paints and coatings industry is set for robust expansion over the coming years, driven by accelerating urbanisation, sustained housing demand and rising infrastructure spending, according to industry estimates.
The market, currently valued at under $10 billion, is projected to grow at a high single-digit compound annual growth rate (CAGR) through the end of the decade, potentially crossing the $16 billion mark by 2030.
Decorative paints continue to dominate the market, accounting for the bulk of demand, supported by new residential construction, renovation activity and improving disposable incomes.
The increasing preference for premium products, texture finishes and customised colour solutions is reshaping consumer behaviour, particularly in urban and semi-urban markets.
Tier-II and Tier-III cities are emerging as key growth drivers as branded players expand distribution and retail reach.
On the industrial side, demand from infrastructure, automotive, manufacturing and protective coatings is expected to remain strong, aided by government-led capex in roads, railways and urban development.
The shift towards water-based, low-VOC and environmentally compliant coatings is also gaining pace, as sustainability considerations become central to both regulatory frameworks and corporate procurement decisions.
Competition in the sector is intensifying, with established players focusing on premiumisation and brand-led differentiation, while newer entrants invest aggressively in capacity, dealer networks and pricing strategies to gain market share.
Analysts believe that economies of scale, raw material cost management and innovation will be critical determinants of profitability over the medium term.
Overall, the outlook for India’s paints and coatings industry remains positive, underpinned by structural growth in housing and infrastructure, evolving consumer preferences and a gradual shift towards higher-value, sustainable products.