India is one of the fastest growing economies in the world. The long-term growth prospective of the Indian economy is positive due to its young population, corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. Industrial production reaches a two year high and the next industrial peak can be anticipated in 2017. The industrial cycle peaks one year after each GDP peak. Given this, India Inc, should realize the full potential of the Indian revival story by 2018 as the effects of growing demand and improvements in infrastructure trickle down to manufacturing.
The industrial sector aided by impetus in infrastructure, is expected to drive the GDP growth in the near future resulting in increased consumption of coatings. The increasing GDP per capita and a growing middle class are expected to raise per capita paint consumption from 4kg to 6 – 7kg by the year 2020.
The per capita consumption of paints and coatings at 4kg as against global per capita consumption of 15kg provides immense opportunity for market penetration in India. With an increasing disposable income, the percentage of middle class by 2020 would have expanded to 69 percent from 52 percent in 2015. The requisite infra spending will create opportunities for industrial coatings, whereas the growing middle class and housing demand will drive the decorative coatings segment. The growing popularity of quality paints and increasing income levels of people residing in Tier – II and Tier – III cities have pushed the growth in premium market of Indian decorative paint industry.
The demand for industrial paint is going to be driven by the pickup in the automobile industry and growth in infrastructure in a country like India.
My dream has always been that India should reach at least 5kg per capita consumption and I am happy that research and statistics show we are inching towards that. The industry has great potential for growth in the coming years.