New Delhi, July 27, 2023 - India has achieved a significant milestone in the agricultural sector, as it emerges as the second-largest exporter of agrochemicals globally, according to recent data released by the World Trade Organization (WTO). This remarkable achievement reflects India's commitment to the "Make in India" and "AatmaNirbhar Bharat" initiatives, receiving accolades from industry observers.
The impressive performance on the export front is attributed to the Indian agrochemical industry's innovative technical capabilities, enabling the swift introduction of competitive post-patent products to domestic and global markets. Indian scientists and engineers, renowned for their expertise, have played a pivotal role in this success. A prime example is the indigenously manufactured Chlorantraniliprole (CTPR), the world's largest-selling insecticide with an estimated annual sale of Rs. 13,000 crores. Previously imported, CTPR is now being produced by several Indian companies, reducing imports and positioning India as an exporter of CTPR.
The Indian agrochemical industry consistently generates a valuable trade surplus. The trade surplus surged from Rs. 8,030 crores in 2017-18 to Rs. 28,908 crores in the last fiscal year.
The United States is the largest buyer of Indian-made agrochemicals, closely followed by Brazil and Japan. This highlights the high-quality standards of Indian agrochemicals, which are trusted and utilized in over 140 countries worldwide. With the global agrochemicals market estimated at $78 billion, predominantly comprising post-patent products, India is rapidly becoming a preferred global hub for sourcing such agrochemicals. To bolster domestic production and reduce imports, the Crop Care Federation of India (CCFI) has recommended specific measures to the Government of India to discourage the import of ready-to-use pesticide formulations.
Amid ongoing discussions on Free Trade Agreements (FTAs) with the European Union, the United Kingdom, and other nations, Mr Deepak Shah, Chairman of CCFI, urges caution against implementing TRIPS-plus measures, such as data exclusivity, which could potentially hamper the growth of India's export-oriented agrochemical and pharmaceutical industries.
Mr Deepak Shah further emphasized that Indian companies have significantly invested in expanding production facilities and capacity to cater to domestic and global markets. Backward integration, capacity expansion, and new registrations are expected to fuel the growth of the Indian agrochemical industry. With favourable policy facilitations, the industry is confident in doubling exports within the next three years.
