India Paints and Coatings Market Research Report: Forecast (2026-2032)

India Paints and Coatings Market Size: Forecast (2026- 2032) 

The India Paints and Coatings Market size is valued at around USD 13.5 billion in 2025 and is projected to reach USD 22.19 billion by 2032. Along with this, the market is estimated to grow at a CAGR of around 8.4% during the forecast period, i.e., 2026-32. India’s paints and coatings industry is poised for robust growth, driven by structural demand, infrastructure expansion, and technological innovation.

For instance, government policies like Pradhan Mantri Awas Yojana - Urban (PMAY-U) show steady additions of 11.86 million new housing units through 2023–2025, and in between 2024 and 2029, PMAY‑U 2.0 aims to deliver 10 million new affordable urban homes for EWS, LIG, and middle-income households. This initiative is supported by a total investment of approximately USD120 billion, including USD 27.6 billion in central subsidies. Enhanced financing measures further support homebuyers, with the 2024–25 Union Budget allocating around USD 480 million for the Credit-Linked Subsidy Scheme (CLSS), making loans more accessible for low- and middle-income groups.

Collectively, these policies reflect a strong government push toward “Housing for All”, expected to significantly expand affordable housing supply, stimulate construction activity, and drive sustained demand for allied industries, including paints and coatings, interior finishes, and related building materials.

India Paints and Coatings Market Recent Developments:

• July 2025: Asian Paints unveiled Cardinal as the Color of the Year 2025, highlighting it as a trend-defining shade for both interior and exterior spaces.
• June 2025: JSW Paints, a subsidiary of JSW Group, has agreed to acquire a 74.76% stake in Akzo Nobel’s India business for about USD 1.64 billion. The deal significantly strengthens JSW’s presence in India’s competitive decorative coatings segment, expanding its portfolio and positioning it as a potential industry challenger. 

India Paints and Coatings Market Scope:

India Paints and Coatings Market Drivers:

Rapid Urbanization and Housing Expansion

India Paints and Coatings Market Growth is witnessing momentum driven by rapid urbanization and expanding housing construction, supported by large government-backed building programs. The country is projected to add 416 million new urban residents by 2050, creating substantial long-term demand for residential units and home-improvement materials.

Under India’s national urban-housing program, the government has announced plans to construct 10 million additional urban homes, significantly boosting the requirement for decorative paints, waterproofing solutions, and exterior coatings. By mid-2025, authorities had already approved 235,000 new homes, contributing to a total of 856,000 sanctioned units under the program, directly driving paint consumption during construction, finishing, and early maintenance cycles. Rising homeownership rates, shorter repainting intervals, and growing demand for premium and eco-friendly products in metros and tier-II cities further strengthen this trend.

Over the coming years, India’s investment in urban housing, comprising approximately 11.8 million PMAY‑U houses sanctioned and 11.4 million grounded alongside the PMAY‑U 2.0 scheme backed by around USD120 billion, is set to drive sustained construction activity. Simultaneously, metro network expansion, with 1,010 km already operational and an additional 980 km under construction across 29 cities, will further increase demand for coatings in large-scale infrastructure projects. Accelerating urbanization, with nearly 40% of India’s population projected to live in urban areas by 2036, is expected to boost repainting, interior finishing, and exterior protective coatings requirements. This long-term, government-backed construction momentum provides strong growth potential for India’s paints and coatings sector, particularly in premium, durable, and sustainable products that meet evolving infrastructure and residential needs.

Rising Vehicle Production and EV Expansion

India’s fast-growing automotive sector is emerging as a major driver for the country’s paints and coatings industry, driven by rising vehicle production and accelerating EV adoption. According to the SIAM, total vehicle production increased to 28.4 million units in 2023, up from 25.9 million in 2022, while passenger vehicle dispatches reached 4.3 million units in 2024, with 65% accounted for by utility vehicles. Automotive exports are also expanding, with a 19.2% increase in 2024, reflecting growing global demand.

Over the coming years, national policy initiatives and industry investment plans are set to intensify this demand further. India’s EV roadmap, driven by the PM E-DRIVE scheme and PLI incentives, aims for 30% EV penetration by 2030, with estimates suggesting the number of operational EVs could rise to 28–80 million by decade-end. This transition will require a broader range of advanced coatings, such as powder coatings, low-VOC sustainable paints, anti-corrosion systems, and specialized EV-grade functional coatings.

As leading automakers like Tata Motors, Hyundai, and several global manufacturers expand their EV and component production capacity within India, paint companies stand to benefit from long-term supply partnerships, higher-value product demand, and increased localization. The expansion of utility vehicles and EV adoption, combined with rising domestic demand and exports, is creating a robust, long-term opportunity for India’s paints and coatings sector, particularly in high-performance, durable, and technologically advanced formulations.

India Paints and Coatings Market Trends:

Rise of Sustainability and Green Chemistry

The Indian paints sector is steadily shifting toward cleaner, greener formulations by moving beyond low-VOC solutions and incorporating genuinely bio-based ingredients. Government-backed initiatives like the proposed PLI scheme for chemicals and petrochemicals aim to reduce carbon intensity and promote eco-friendly manufacturing.

Investments in Petroleum, Chemicals & Petrochemicals Investment Regions (PCPIRs) are expected to reach USD142 billion by 2025, with a portion dedicated to sustainable and specialty chemicals. Eco-mark certification for architectural paints and powder coatings incentivizes low-VOC and environmentally safe formulations.

For instance, Asian Paints has expanded this approach through its Nilaya Naturals line, which is formulated with more than 90% naturally sourced inputs such as neem oil, soybean derivatives, casein, and castor-based materials signaling a clear effort to lower reliance on petrochemical feedstock. The company is also channeling investments into a wider portfolio of “Sustainably Advantaged Products,” designed to cut emissions, enhance resource efficiency, and integrate renewable content, tying product development directly to its broader ESG commitments.

Kansai Nerolac is pursuing a similar path by embedding green chemistry principles into both its R&D and manufacturing processes. The firm has phased out heavy metals, significantly reduced hazardous substances, and built a “Healthy Home Paints” lineup that meets low-VOC and toxin-free requirements. Its sustainability plan also emphasizes transitioning to renewable inputs and cleaner energy sources already sourcing more than 45% of its power from renewables and targeting further emissions and material-use reductions.

Collectively, these initiatives indicate that India’s paint manufacturers are aligning rapid sector growth with environmental accountability, offering safer and eco-friendly coatings while preparing for evolving regulations and rising consumer preference for sustainable products.

Tech-Driven Retail Transformation

Indian paint manufacturers are embracing digital technologies to make the buying journey faster, simpler, and more personalized. Tools such as mobile apps, AR/VR shade visualizers, and integrated painting-service platforms now allow customers to preview colors on their own walls, calculate paint requirements instantly, and schedule professional services with minimal effort. These solutions reduce hesitation, improve decision-making, and increase overall purchase conversions.

Companies like Asian Paints have been early adopters: its “Color with Asian Paints” app and the Beautiful Homes service combine virtual visualization with expert consulting and end-to-end execution, helping the brand drive both premium product sales and service revenues. On the distribution side, digitalization is strengthening dealer capabilities and operational efficiency. Smart tinting systems, AI-driven Color matching, dealer loyalty apps, and predictive analytics are helping retailers minimize errors, fulfil orders more efficiently, and expand deeper into emerging cities.

Kansai Nerolac’s “Color My Space/NVISION,” Berger’s “My Color/Color Studio,” and Dulux’s AR-powered Visualizer are advancing the shift toward tech-enabled consumer engagement, while Indigo Paints has expanded its digital marketing and rolled out its own Color Visualizer as part of its expansion strategy. Collectively, these initiatives are transforming the market from a product-centric model to a platform-and-service ecosystem, enabling faster growth, greater premiumization, and stronger brand presence across India.

India Paints and Coatings Market Challenges:

Raw Material Price Volatility

A significant challenge for India’s paints and coatings sector is the ongoing fluctuation in raw material costs. The industry depends heavily on petrochemical-based inputs such as resins, solvents, titanium dioxide, and specialty additives used in both decorative and industrial paints. Global swings in crude oil and chemical prices directly affect production expenses, creating uncertainty in budgeting and squeezing profit margins.

In Q4 2024, AkzoNobel India experienced an 11% increase in raw material costs. This rise underscores the broader trend of input cost inflation, particularly for crude oil–derived chemicals, presenting ongoing challenges for international paint companies operating in the Indian market. In 2025, Asian Paints reported an operating cost of approximately USD 3.37 billion, while Berger Paints’ operating cost for the same period was around USD 1.17 billion. Such volatility impacts the entire supply chain, from manufacturers to distributors and applicators, eventually affecting end consumers.

India Paints and Coatings Market (2026-32) Segmentation Analysis:

The India Paints and Coatings Market Report and Forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Product Type

• Decorative Paints
• Industrial Coatings
• Automotive Coatings

The decorative paints segment holds the top spot in the Indian Paints & Coatings Industry. This leadership is largely driven by rapid urbanization, rising homeownership, and government housing initiatives such as PMAY‑Urban, which significantly increase demand for interior and exterior wall finishes. Growing disposable incomes, along with a consumer preference for premium, eco-friendly, and low-VOC paints, further accelerate adoption in metros and tier-II/III cities.

Market leaders like Asian Paints and Berger Paints capitalize on this trend by offering innovative water-based, textured, and smart coating solutions, supplemented with digital color visualization and end-to-end service tools. These factors make decorative paints the key revenue and volume contributor in India, outpacing both industrial and automotive coatings segments.

Based on Technology

• Water-Based
• Solvent-Based
• Powder Coatings

The water-based segment dominates the India Paints and Coatings Market due to tighter environmental norms, health and safety concerns, and increasing consumer preference for eco-friendly products. In 2025, these coatings accounted for the majority of decorative paint consumption, as low-VOC formulations help lower emissions and meet government compliance standards.

Urban and tier-II/III homeowners favor water-based paints for interior and exterior walls due to their fast drying, low odor, and ease of application. Leading companies such as Asian Paints, Berger Paints, and Kansai Nerolac are enhancing their portfolios with advanced water-based solutions, including washable, textured, and premium finishes. This combination of sustainability, convenience, and product innovation has positioned water-based coatings ahead of solvent-based and powder options in terms of both adoption and market share.

Leading Players of the India Paints and Coatings Market:

• Asian Paints Ltd.

Asian Paints Ltd, founded in 1942 and headquartered in Mumbai, Maharashtra, is India’s leading paint manufacturer and a dominant player in both decorative and industrial coatings. The company offers a wide range of products, including interior and exterior wall paints, emulsions, enamels, and industrial coatings, while also providing innovative services such as digital color visualization tools and end-to-end smart painting solutions for homeowners and businesses. For 2025, Asian Paints reported an annual revenue of approximately USD 4.09 billion.

• Berger Paints India Ltd.

Berger Paints India Ltd, established in 1923 and headquartered in Kolkata, West Bengal, is a leading manufacturer of decorative and industrial coatings. The company specializes in interior and exterior wall paints, protective coatings, and high-performance industrial finishes, delivering premium, eco-friendly solutions to customers in both urban and semi-urban regions.

• Kansai Nerolac Paints Ltd.

Kansai Nerolac Paints Ltd, founded in 1920 and headquartered in Mumbai, Maharashtra, is a leading Indian paint company specializing in industrial, automotive, and decorative coatings. The firm is well known for its high-performance paints, powder coatings, and environmentally compliant solutions, serving both automotive OEMs and a wide range of industrial applications.

Indigo Paints Ltd., AkzoNobel India Ltd., Shalimar Paints Ltd, Nippon Paint (India), Jenson & Nicholson (India), Sheenlac Paints, Snowcem Paints, and others are the key players in the India Paints and Coatings Market.

India Paints and Coatings Market (2026-32): Regional Projection 

The India Paints and Coatings Market is dominated by the West region, particularly Maharashtra and Gujarat, which is the leading market for paints and coatings due to a strong mix of industrial, infrastructure, and real estate activity. In 2025, Maharashtra leads the country in residential development, with over 50,000 housing projects registered under MahaRERA, marking it as the state with the largest pipeline of RERA-approved residential constructions in India. Cities like Mumbai and Pune drive significant demand for decorative paints because of large-scale residential and commercial construction.

Meanwhile, Gujarat’s industrial Centres, such as Ahmedabad and Surat, generate substantial need for industrial and protective coatings. Extensive infrastructure projects, including highways, metro networks, and smart-city developments in both states, further boost demand for high-performance coatings. The combination of rapid urbanization, growing disposable incomes, and concentrated manufacturing hubs positions the Western region as the most prominent and influential market for paints in India.

Gain a Competitive Edge with Our India Paints and Coatings Market Report 

• India Paints and Coatings Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions. 
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition. 
• India Paints and Coatings Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations. 

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