Market Trends of india architectural coatings Industry
This section covers the major market trends shaping the India Architectural Coatings Market according to our research experts:
Residential is the largest segment by Sub End User.
- The architectural coating consumption in India dipped in 2016 and 2017 due to the demonetisation and introduction of GST. The demonetisation impacted the retail spending of the consumers due to limited availability of cash. Thus, diverting the priority of consumers spending on the daily needs rather than painting the houses. The Goods and service tax, which came into effect in July, 2017 also laid a considerable impact on the paint industry as the Paints have been classified in the GST tax rate slab of 28%, higher than 24-27% paid out in the form of excise, value added tax (VAT) and entry taxes. Furthermore, the country’s GDP declined by 1.5% in 2017 compared to the previous years.
- The consumption recovered quickly and peaked in 2018 due to the higher addition of floor area and increasing foreign direct investment (FDI) equity inflows for the construction development sector. For instance, According to Department for Promotion of Industry and Internal Trade (India) the FDI in 2018 increased to 540 USD million from 105 USD million in 2017.
- The slow growth in the architectural coating consumption was observed in 2019 followed by a decline in 2020 due to lower new constructions in both residential cand commercial sector owing to the spread of covid-19 in the country and lockdown of 50 days across the country. The increase in consumption and sales is expected to grow at a significant rate in the forecasted period due to the rising population in the country and positive investment in the rapid growing construction sector. According to IMF, The total population in the country is expected to increase by 3.6% during the 2022-26.
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