India’s paint industry, worth USD 10.46 billion in 2025 and expected to grow to USD 16.37 billion by 2030 at a CAGR of 9.38%, is making a paradigm shift towards sustainable formulations.
With increasing environmental consciousness, tighter regulations, and consumer pressure to buy eco-friendly products, manufacturers are experimenting with low-VOC, bio-based, and non-toxic paints.
Although these developments make India a pioneer in sustainable coatings, challenges such as high cost and low awareness risks stalling the momentum.
Sustainability is transforming the industry that caters to key sectors such as construction, automotive, and industrial uses.
With 70% of demand coming from paint for real estate, driven by programmes such as the Smart Cities Mission and Pradhan Mantri Awas Yojana (PMAY), the architectural segment is spearheading the drive.
Government policies, for example, the Bureau of Indian Standards (BIS) lowering lead levels in paints from 1,000 ppm to 90 ppm, and green building ratings like LEED are fueling demand for low-volatile organic compound (VOC) and biodegradable paints.
A report by Coatings World in 2024 added that environment-friendly paints will dominate a large market share, with post-COVID health issues and growing disposable incomes fueling demand.
Leading players are launching green innovations. India’s largest paint company, Asian Paints, introduced Nilaya Naturals in 2019, a series of organic paints containing more than 95% natural content such as soya bean, castor seeds, and neem oil that provide anti-fungal protection and low VOCs. Kansai Nerolac launched water-based, low-VOC paints certified by the National Test House (NTH), while Indigo Paints’ “Indigo Green” series employs natural sources and environmentally friendly packaging with VOC content below 5 grams per liter.
One such innovation is Khadi Prakritik Paint, created by the Khadi and Village Industries Commission (KVIC) from cow dung as a key material.
The affordable, smell-less paint, marked with BIS certification, has anti-bacterial and anti-fungal features, and is available in distemper and emulsion types. A recent Asian Paints patent of a water-based alkyd-acrylic hybrid dispersion highlights the sector’s emphasis on merging durability with sustainability.
Startups and small companies are also playing a role. Kamdhenu Natural Paints, the company behind Khadi Prakritik, and More Maestria Paints are launching bio-based products such as plant-based resins and natural dyes for niche segments.
At Paint India 2024, Arkema presented waterborne technologies with a bio-based content of up to 97%, lowering carbon footprints while improving performance in industrial and decorative coatings. Nanotechnology is picking up momentum, with startups such as NanoMiix creating antimicrobial additives with nanosilver and zinc oxide, enhancing paint hygiene and durability.
Government initiatives are speeding up adoption. The National Green Mission and more stringent environmental laws are encouraging producers to minimize VOCs and go for sustainable raw materials.
The Production-Linked Incentive (PLI) scheme encourages R&D of environment-friendly formulations, while the MSME-centric Raising and Accelerating MSME Performance (RAMP) scheme encourages adoption of technology by smaller producers
The PM Suryaghar Free Electricity Scheme encourages energy-efficient production, with solar-powered units lowering power costs by 15% for SMEs in Gujarat paint clusters, as per a 2024 CII report.
Sustainability is not limited to formulations but stretches to manufacturing processes as well. Organizations such as Frigmaires Engineers are using energy-efficient paint mixers and low-water cleaning systems, reducing energy consumption by 20%.
Innovative wastewater treatment technologies, like bimetallic metal-organic frameworks (BMOFs), give 96.4% CODCr removal and 80% water reuse, minimizing environmental footprint.
AkzoNobel’s Makrofol EC with more than 50% plant-based carbon content is a symbol of making a transition towards renewable feedstocks, lowering carbon footprints by 20%.
Despite progress, challenges remain. High costs of sustainable formulations—often 20-30% more expensive than conventional paints—deter MSMEs, which hold a 23% market share. Only 10% of SMEs have adopted low-VOC technologies due to financial constraints, per a 2024 SIDBI report.
Awareness is low in Tier 2 and rural markets, where price-sensitive consumers prioritize cost over sustainability.
Lack of skills also slows down innovation, with only 5% of the work force skilled in new coating technologies, according to Nasscom.
To stay ahead of these challenges, specialists suggest selective interventions. Subsidies on bio-based raw materials, as in the case of the MSME Technology Upgradation Scheme, can reduce costs. Increasing digital training initiatives such as the Skill India Digital Hub can fill skill gaps, with 2 million workers already trained in Industry 4.0 technologies.
Public awareness campaigns, enabled by industry organizations such as CII, can propel demand for green paints in tier-II and tier-III cities. Public-private partnerships, as shown through Arkema’s Navi Mumbai research facility, can help speed up innovation.
India’s paint sector is at a critical juncture, weighing growth and sustainability.
With an estimated market size of USD 16.37 billion in 2030, sustainable formulations are no longer a trend but a requirement to match global standards as well as consumer expectations.
Through removing cost, awareness, and skill barriers, India can initiate the world’s transition to green coatings, painting a greener future for the industry.