ICRA expects the profitability of the Indian agrochemical industry to remain stable in FY2027 amid modest volume gains, driven by the domestic market and the easing of US tariff pressures. The removal of value-added tax (VAT) export rebate by China on technicals/intermediates will be a positive for technical manufacturers in India but negative for non-integrated formulators as it will increase the cost pressure.

• The Indian agrochemical industry has witnessed a gradual uptick in profitability in YTD FY2026 amid stable agrochemical prices and modest volume gains.
• After the US-India trade deal, Indian agrochemical imports now face a tariff of 18% in the US against 35% levied on Chinese agrochemical products. This has improved the competitive position of Indian agrochemical players in the US markets and should support volume gains.