The Indian paint and coatings industry has seen demand nose-dive in during most part of 2020 due to the pandemic around. However the industry started to pick up during the first few months of 2021.
The Indian paint and coatings industry, which was expected to reach $8 billion in the just concluded financial year registered one of the worst performances in recent years. The pandemic and lockdown conditions enforced throughout the country has caused huge disruption in the whole production and supply chain of the domestic paint and coatings industry.
It is estimated that by the end of 2025, the construction industry in India may emerge as the third-largest on a global level. According to the Industry experts, the annual growth rate of the Indian construction industry is expected to be about 7.1% by 2025, which is expected to drive the consumption of paints and coatings in the country.
The Indian paint industry currently valued at around Rs. 50,000 crores is poised to grow at a healthy rate and is expected to reach around Rs. 70,000 crores by 2021-22. There is a strong correlation between the paint industry and GDP growth of the country. It has historically surpassed India’s GDP growth by 1.5 to 2 times. And the reduction of GST rates from 28% to 18% has come in as a breather for the paint industry.