India’s agrochemical industry is witnessing a surge in demand from Europe, driven by a shifting regulatory landscape that increasingly favors Indian exports, according to a recent report by Nuvama.
The report highlights that Europe’s competitive advantage in the chemical sector is gradually diminishing, opening opportunities for India to strengthen its foothold in key segments. Alongside agrochemicals, India’s small-molecule pharmaceutical research industry is also expanding, benefiting from evolving market dynamics.
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With European chemical manufacturing becoming less competitive, many multinational companies are relocating production to India, leveraging lower costs and government incentives. A key driver of this shift is Europe’s growing dependence on chemical imports from India and China.
The report notes that in 2023-24 alone, approximately 11 million tons of chemical manufacturing capacity were shut down across Europe, with over 21 major chemical plants closing—a tenfold increase compared to historical averages. Once these plants close, they rarely reopen, leading to a permanent decline in Europe’s industrial base.
As Europe transitions from being a manufacturing hub to a net chemical importer, Indian companies are well-positioned to expand their global market share in agrochemicals and specialty chemicals. With cost advantages and favorable policies, India is emerging as a dominant player in the global chemical supply chain.
