Published on April 27, 2015

India is the second largest coating market in Asia after China. In the past decades, paint consumption was very high and achieving double digit growth rate. In 2012-2013, the coatings industry witnessed a slowdown. Economic growth in the country failed to achieve the rates encountered in previous years and the rupee depreciated, putting off many investors.

After the election, demand from customers has been improved, and by early 2014 the paint sector was performing somewhat better. This year the decorative and architectural paints segment is expected to show good growth rates going forward; the housing sector is benefitting from government incentives, and the increasing urbanization trend will trigger a need for new housing stock which will boost the demand for coating.

As per the market source, the automotive industry is also expected to bounce back from recent problems, particularly as export markets recover. Rising prosperity among the population will also bring about a greater demand for cars and consumer goods which will boost the demand for industrial paint.

GCP source said that, all the major paint manufacturers are undergoing or have recently undergone expansions and are opening new plants. This indicates that they remain optimistic about the future of the market and see further growth opportunities, despite recent difficulties.