Doing Business in India

 

Renee Targos Editor

Over the last several years, India’s crop protection industry has faced setbacks, but even so, it continues to stand its ground while inching into new territory.

Mordor Intelligence reported that the Indian agrochemical market is at U.S. $9 billion in 2025 and projected to reach U.S. $12.7 billion by 2030.

Indian companies are offering more than generics. They’ve broadened their services and expanded their manufacturing capacities to keep up with trends favoring sustainability, innovation, and supply chain diversity.

Abhijit Bose, President/CEO, Tagros Chemicals

“India is transitioning from manufacturing generic agrochemical formulations to investing in R&D for novel, patented formulations,” says Abhijit Bose, Executive President/Chief Operating Officer for Tagros Chemicals.

Rajesh Kumar Agarwal, Managing Director for Krishi Rasayan Exports agrees that India isn’t only about generics.

“I would say the Indian agrochemical sector is no longer just about supplying products—it’s about shaping the future of farming,” says Agarwal. “The country sits at the intersection of three powerful forces: food security, sustainability, and adoption of technology. Farmers are becoming more data-driven, policymakers are pushing for greener solutions, and global supply chains are looking to India for harvesting growing business opportunities.”

What’s Changed?

With several drivers and detractors over the years, the one big disruption no one expected in 2025 came via U.S. tariffs.

“A major issue impacting the Indian agrochemical industry is the 50% tariff imposed by U.S. President Donald Trump, which will have significant impact on Indian agrochemical exports,” says Pradip Dave, President of the Pesticides Manufacturers & Formulators Association of India (PMFAI) and Chairman, AIMCO Pesticides Ltd., “as the U.S. is one of the largest agrochemical export destinations for Indian agrochemical companies.”

However, due to Indian companies expanding their services, amping up intellectual property (IP) protection and adding new technology, Indian companies are engaging with businesses outside of the U.S.

“Japanese companies are showing great interest in manufacturing in India and have long-term partnerships, which clearly reflect the confidence in Indian suppliers’ capabilities,” says Shalabh Jain, CEO for Hemani Industries, Ltd.

Shalabh Jain, CEO, Hemani Industries, Ltd.

“Contract manufacturing and contract research organizations (CROs) are becoming very prominent for these partners,” says Jain. “Indian companies are quick to respond from concept to commercial.”

Another driver of growth is the “Make in India” incentives supporting local manufacturing to become more self-reliant.

“India is pushing domestic production of technicals and its intermediates,” says Agarwal. “This is reducing dependence on imports and is creating a stronger local base of suppliers. For external sourcing partners, this means they can now explore India not just as a market but also as a reliable global supply hub.”

Other changes in the country include the digitization of ag retailers in delivery, inventory tracking, and grower engagement.

“In 2024, agri-input retailers held about 70% of the market share,” says Bose, “while e-commerce platforms are growing fast, with a 16.5% CAGR projected through 2030. Ag retailers are leveraging digital credit platforms and online channels to smooth out procurement cycles and extend reach.”

Strategic Considerations

One of the biggest hurdles for doing crop protection business in any country is tackling regulations. Agarwal encourages companies to have a local expert to help with creating a strong strategy to access the Indian market.

“Understand the regulatory roadmap,” says Agarwal.

Rajesh Agarwal, Managing Director, Krishi Rasayan Exports

“Engage early with the CIB&RC (Central Insecticides Board & Registration Committee) and keep track of upcoming guidelines on bio-pesticides, safety, and packaging,” says Agarwal.

Bose also stresses the importance of being aware of label and international residue limits.

“Adapt labels now to meet bilingual and QR-code requirements,” says Bose. “Track CIB&RC approvals and swiftly align supply chains once MRLs are notified. Continuously monitor key export destinations (like the EU) for shifting MRL benchmarks.”

In addition to regulatory strategies, it’s important to take advantage of Government of India business incentives.

“Industry associations’ 2025–26 budget recommendations include a 200% weighted deduction for R&D, a uniform 10% customs duty (instead of potential hikes to 30%), and a Goods and Services Tax (GST) reduction from 18% to 12% to aid affordability and innovation,” says Bose. “Also, companies should be aware of the Production-Linked Incentives (PLI), which under “Make in India,” the government’s PLI schemes were created to stimulate local manufacturing.”

Agarwal’s Five Quick Tips for Good Business

1. Technology integration: “Drones for spraying and data capturing, IoT-based soil monitoring, and AI-driven crop diagnostics are gaining traction, especially with government support for digital agriculture,” says Agarwal. “Agrochemical firms that integrate advisory services, precision tools, and crop protection inputs will create stronger farmer value propositions and stand out from competitors.”

2. Tailored portfolios: With changing crop patterns, climate change, and the Government of India’s incentives for farmers to shift to cash crops, like fruits and vegetables, Agarwal says, “Distributors must tailor product portfolios to cater crop- and region-specific needs instead of relying on broad-spectrum products alone.” Integrated pest management plans can be customized to meet growers’ needs while reducing environmental and health impacts.

3. Local partnerships: Collaboration with an established Indian company can accelerate growth. “A local partner brings a desired understanding of regulatory compliance requirements, trade channel dynamics and behavior as well as deep knowledge of farmer behavior, regional crop needs, and government relations,” says Agarwal. “Partnerships also adds credibility and help new entrants scale faster and easier in India’s highly competitive environment.”

4. Long-term game plan: Prices and availability of intermediates is not as predictable due to global energy costs, shipping logistics, and trade policies. Sourcing teams that plan for longer-term contracts and diversified supplier networks mitigate risks. “The real opportunity lies in co-creating solutions with Indian partners and farmers—whether that’s combining chemistry with biology, pairing products with digital tools, or developing molecules tailored for India’s diverse cropping systems,” says Agarwal.

5. Farmer engagement: Companies that invest in farmer education and after-sales support tend to gain long-term loyalty and brand preference.

Opportunities: Generics and Beyond

While India grows in diversity of services and expanding markets, India can still be counted on for the manufacturing of generics.

“About $4.2 billion worth of products were expected to go off-patent around 2023, opening doors for manufacturing around 26 active ingredients as generic molecules,” says Bose. “About 75% of active ingredients globally are now off-patent, aiding Indian producers in exporting affordable generics and building competitive pipelines.”

And beyond the generic active ingredients are the biological products. This comes with United Nations investments in soil restoration and Government of India supporting Indian growers to enter the organic food markets.

“The demand for bio-based products like biopesticides is rising significantly, driven by environmental awareness and government support,” says Bose. “The biopesticides market in India is projected to grow from approximately U.S. $218 million in 2024 to U.S. $348 million by 2029, a CAGR of roughly 9.8%.”

There is also a growing demand for green chemistries, biostimulants, and innovative nanoformulations, controlled-release systems, and drone-based precision application products.

Another area of opportunity is the post-harvest management and crop value protection.

“India loses a significant portion of its produce post-harvest due to value increase in transportation, logistics, storage and pest infestations,” says Agarwal. “There is rising demand for grain protectants, fumigants, and safe storage solutions, making this a promising opportunity for international firms with expertise in this area.”  •

bertran oaro – stock.adobe.com
Abhijit Bose: Tagros Chemicals
Shalabh Jain: Hemani Industries, Ltd.
Rajesh Kumar Agarwal: Krishi Rasayan Exports