India’s High-Performance Coatings Market as a Growth and Manufacturing Platform for Specialty Chemical Companies

The global coatings industry is rapidly shifting toward waterborne, low-VOC, and high-performance chemistries as sustainability regulations tighten and downstream industries demand improved environmental and technical performance.

Waterborne coatings have become one of the fastest-growing global segments, supported by increasing adoption in automotive, industrial, and construction applications. The global market is expected to surpass 140 bln EUR by 2035, driven by innovation in dispersants, rheology modifiers, polyurethane dispersions, adhesion technologies, and next-generation corrosion-resistant systems—areas where established specialty chemical manufacturers continue to lead.

India has emerged as one of the most dynamic coatings markets globally. Valued at 7.3 bln EUR in FY’22, the market is projected to reach 11.3 bln EUR by FY’28 at a CAGR of 8%. Waterborne systems already dominate more than 70% of India’s decorative coatings segment, while industrial and automotive applications are transitioning rapidly toward waterborne, high-solid, and low-VOC formulations. This shift is supported by infrastructure expansion, rising vehicle production, urbanization, and increasing alignment with global sustainability and performance standards.

Despite this momentum, India’s domestic value chain faces capability constraints in advanced, high-performance coating ingredients. Local supply remains concentrated in conventional chemistries such as commodity binders, acrylic emulsions, and general-purpose additives. Access to advanced dispersing agents, organo-modified rheology modifiers, silane-based adhesion promoters, polyaspartic resins, polyurethane dispersions, and long-life anti-corrosion systems is still limited and heavily dependent on imports. As a result, achieving globally comparable performance benchmarks, particularly in automotive coatings, industrial machinery, export-grade protective coatings, and metal-substrate systems, remains a challenge for formulators.

This gap creates a compelling opportunity for technology-driven specialty chemical companies. Companies with strong R&D pipelines, a proven sustainability roadmap, and established high-performance coating portfolios are well-positioned to support India’s next stage of capability development. Companies that combine high-performance ingredient supply with localized technical service, customer application development, and selectively localized manufacturing can build strong competitive positioning, not only for the Indian market but also as a manufacturing base to serve regional export markets across the Middle East, Africa, Europe, and Southeast Asia.

EAC International Consulting supports companies in navigating this opportunity. With deep expertise in the chemicals and coatings value chain, EAC assists international firms in market assessment, partner evaluation, supply chain benchmarking, and localization strategy development. Several German and European chemical companies have already leveraged EAC’s on-ground expertise to establish scalable operations, strengthen customer engagement, and build supply resilience in India.

With a fast-growing end-market, evolving technology requirements, and increasing demand for high-performance, sustainable coating solutions, India represents a timely strategic opportunity for specialty chemical suppliers seeking growth, manufacturing leverage, and long-term competitive advantage.

Dr. Rajesh Raut and Radhika Taur, at EAC International Consulting work together and is looking forward to having a detailed discussion with you on this topic.