From Flyovers to Facades: The Silent Growth of India’s Paint & Coatings Market

India paints and coatings sector rarely grabs headlines like tech or finance—but it's everywhere. Behind every newly built flyover, freshly painted apartment, or rebranded storefront lies a market that’s not just growing, it’s quietly doubling in size.

By FY2033, this market is projected to reach USD 27.33 billion, nearly double its size in FY2025. The numbers are only part of the picture. The real drivers? Urban growth, policy moves, and a tech-forward industry mindset.

Urban Growth and Policy Are Setting Pace

Urbanization in India isn’t just happening—it’s being shaped. What was once a side effect of migration is now guided by national programs like the Smart Cities Mission and Housing for All. These aren’t lofty slogans; they come with budgets, blueprints, and timelines.

The Smart Cities Mission alone received a USD 973 million allocation in FY24, and by early 2023, over 7,800 projects had been sanctioned, with more than two-thirds already underway. This isn’t just about roads and buildings. It’s about what those structures need—inside and out. And coatings play an invisible but essential role here, from protection against wear and weather to delivering the final aesthetic.

What’s happening isn’t merely expansion; it’s structured development. And that’s a far more fertile ground for sustained industry growth.

The Shift Toward Water-Based Paints Is No Longer Marginal

Environmental consciousness in manufacturing isn’t new, but in India’s paints market, it has reached a tipping point. What began as a niche category, Water-based coatings are fast becoming the industry baseline, as regulation tightens, consumer demand leans green, and cost volatility favors water over solvent.

Solvent-based coatings are increasingly exposed to oil price volatility. Water-based alternatives? Not so much. They offer more predictable margins and significantly lower VOC emissions—a detail that matters more now than it did even a few years ago.

Asian Paints’ decision to invest USD 235 million in a new waterborne paint facility in Madhya Pradesh is emblematic of this shift. A plant of this scale—producing up to 400,000 kiloliters annually—doesn’t emerge from a trend. It emerges from a belief in the direction the market is taking. And the market is clearly leaning toward sustainability high-performance coatings.

Expansion Isn’t Random—It’s Strategic

One of the most telling developments in recent years is how companies are expanding. It’s not just about more plants—it’s about smarter ones.

Grasim Industries, under the Aditya Birla Group, inaugurated its fourth paint facility in Karnataka in 2024. That addition pushed the company’s production capacity to 866 MLPA. But it’s not the scale that stands out—it’s the tech: zero liquid discharge, next-gen processes, and facilities built for flexibility.

Meanwhile, Berger Paints, marking a century in India, made its move in Uttar Pradesh with a USD 120 million facility—its largest. Capable of processing water- and solvent-based paints along with construction chemicals, the plant is fully powered by solar energy and employs a zero liquid discharge system to eliminate wastewater.

This kind of manufacturing infrastructure isn’t just for today. It’s built for the kind of demands the next decade will bring.

Northern India Is Becoming a Hub—For More Than Just Production

Geographical factors can dictate business expansion plans. Northern states like UP, Haryana, and Punjab are booming in the paint sector—not just because people are buying more, but because their locations make them key players in the supply chain.

Cities are growing fast, new homes are popping up everywhere, and industrial zones are on the rise—all of which means more need for stylish wall paints and tough coatings for machines and vehicles.

The automotive sector plays a key role here, as does broader infrastructure development. There’s also a visible uptick in interest around automotive paints and coatings, particularly low-VOC, high-durability products, which mirrors the growing preference across India’s rising middle class for more sustainable, high-quality choices.

Companies aren’t just selling here. They’re anchoring their growth in these regions.

Sustainability Is No Longer a Buzzword—It’s a Business Case

In this industry, going green used to be about following the rules. Now, it's a way companies stand out from the crowd in the paints industry in India.

Green coatings, low-VOC paints, and innovations like powder-based, UV-cured, and smart coatings (self-healing, antimicrobial, etc.) are no longer on the fringe. They’re moving to the center of product strategy. Not because they sound good in an ESG report, but because they deliver on durability, user safety, and lifecycle performance.

And in a market as diverse and quality-sensitive as India, that matters.

The trend aligns with what’s happening globally, but it’s being interpreted through a distinctly local lens—balancing cost, climate, and consumer sentiment.

Looking Ahead: A Market Ready to Reinvent Itself

It’s tempting to see the paints and coatings market as cyclical—tied closely to housing or industrial upturns. But the past few years suggest something else: a foundational shift, not a temporary high.

1. Government-backed infrastructure is no longer sporadic. It’s sustained and strategic.

Gone are the days of scattered infrastructure projects in India. Now, with national policies like the Smart Cities Mission and PM Gati Shakti, there's a coordinated push driving development in homes, transport, and industry—all backed by clear plans and budgets.

From flyovers to metro systems and industrial parks, every new build needs coatings—whether for protection, aesthetics, or industrial use. And since infrastructure spending now takes up a set slice of the GDP, we can count on steady demand from this sector.

2. Manufacturing capacity is becoming smarter, greener, and more resilient.

Paint manufacturers are advancing beyond mere expansion; they're embracing transformation. New facilities are incorporating zero liquid discharge systems, harnessing solar energy, and optimizing for efficiency. Grasim's multi-plant initiative and Berger's solar-powered facility in Uttar Pradesh exemplify this evolution.

Eco-friendly paint technology is a move toward environmental responsibility, but also strategic. Smarter, automated plants lower waste, increase product consistency, and reduce energy dependence. The result is a sturdier supply chain—less vulnerable to shocks, better prepared for long-term growth.

3. Consumer preferences are maturing, favoring sustainability, performance, and long-term value.

Today’s buyers—whether individual or institutional—expect more than just color or cost. The preference has shifted toward products that are safer, last longer, and carry fewer environmental trade-offs.

Low-VOC coatings are gaining traction, especially in urban markets, where awareness about indoor air quality and green living is on the rise. At the same time, durable, low-maintenance paints are becoming a necessity in moisture-heavy or high-exposure regions. Performance and sustainability are no longer premium features—they’re becoming standard expectations.

4. Technology, once limited to niche applications, is redefining what coatings can do.

Coatings are being reimagined. No longer just cosmetic or protective, they’re becoming functional. Hospitals use antimicrobial paints to maintain hygiene. Automobiles rely on UV-cured or scratch-resistant Automotive coatings to improve aesthetics and durability.

Powder coatings offer durability with zero VOC emissions. And technologies like self-healing or thermochromic (color-changing) coatings are slowly moving from labs into scalable use. Thanks to new innovations, coatings are now being applied in more places and in more ways, serving as customized solutions in multiple sectors

All this points toward a sector that’s quietly stepping into a new role—not just supporting India's growth but reflecting it.

The paints and coatings industry is rarely in the spotlight. But perhaps it should be. With each step forward, India's growth is painting a clearer picture of progress for all to see

See What’s Powering the Growth of India’s Paint Industry. Explore the latest trends, technologies, and regional opportunities shaping the market. https://www.marketsandata.com/industry-reports/india-paints-and-coating-market