India Water Treatment Chemicals Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

India Water Treatment Chemicals Market Analysis

The India Water Treatment Chemicals Market size is estimated at USD 0.68 billion in 2025, and is expected to reach USD 1.04 billion by 2030, at a CAGR of greater than 9% during the forecast period (2025-2030).

India's water treatment chemicals industry operates within a challenging environment where the country possesses only 4% of global water resources despite housing 18% of the world's population. The sector is witnessing transformative changes driven by rapid industrialization and urbanization, coupled with increasing awareness about water quality and sustainability. The government's push towards infrastructure development has led to significant investments in water treatment chemicals market facilities, particularly in urban areas. This is evidenced by recent initiatives such as the Mumbai Municipal Corporation's ambitious INR 26,000 crore sewage treatment plants project launched in January 2023.

The industry is experiencing a paradigm shift in water management approaches, particularly in the industrial sector. A notable development is the February 2023 initiative in Gujarat, where industrial units are transitioning to using treated sewage water instead of groundwater, marking a significant step towards sustainable water management practices. This trend is particularly significant given that groundwater currently supports 60% of irrigated agriculture and provides 85% of rural domestic water supply, highlighting the urgent need for alternative water sources and treatment solutions.

The municipal sector is undergoing substantial transformation through various government initiatives aimed at improving water infrastructure. As of January 2023, over 11 crore rural households have gained access to tap water connections, representing a significant expansion in the need for water treatment chemicals solutions. This expansion is particularly noteworthy as it creates new opportunities for water treatment chemical manufacturers while addressing critical public health concerns. The sector's growth is further supported by the implementation of advanced treatment technologies and the increasing adoption of sophisticated chemical industry market size in India solutions.

The market is characterized by a growing emphasis on sustainable and environmentally friendly treatment solutions. According to NITI Aayog, India generates approximately 72,368 MLD of sewage daily, with the capacity to treat only 37%, indicating substantial room for expansion in treatment capabilities. This gap presents significant opportunities for innovation in water and wastewater treatment chemicals and technologies. The industry is witnessing increased adoption of advanced industrial water treatment chemicals that offer improved efficiency while meeting stringent environmental standards, particularly in industrial applications where water quality requirements are becoming increasingly stringent.

India Water Treatment Chemicals Market Trends

Increasing Demand for Treated Water

India faces significant water scarcity challenges as it possesses only 4% of the global water resources while housing approximately 18% of the world's population, making it one of the most water-stressed countries globally. The growing population and increasing urbanization have led to a substantial rise in water demand across various sectors. According to recent assessments, more than 80% of the rural water supply depends on groundwater, which is depleting at an alarming rate due to over-exploitation and climate change impacts. The government's ambitious Jal Jeevan Mission, launched to address these challenges, has made significant progress, with over 11 crore rural households gaining access to tap water connections by January 2023, compared to just 3.23 crore households in 2019.

The country's water treatment infrastructure requires significant expansion to meet the growing demand for treated water. Currently, India generates approximately 72,368 million liters per day (MLD) of urban wastewater, of which only 28% (20,236 MLD) undergoes treatment. Recent developments showcase the increasing focus on water treatment, such as the February 2023 initiative in Gujarat, where industrial units in Ahmedabad are being considered for treated sewage water supply to reduce groundwater usage. The country's capacity for water treatment chemicals stands at 27.3%, while sewage treatment capacity is at 18.6% (with an additional 5.2% capacity being added), indicating substantial room for growth in the market for water and wastewater treatment chemicals as infrastructure expands to meet the rising demand for treated water.

Stringent Regulations Around Wastewater Treatment in Industrial Units

The implementation of stringent regulations governing industrial wastewater treatment has become a crucial driver for the market for industrial water treatment chemicals in India. Under the Ministry of Jal Shakti's Centrally Sponsored Scheme of the National River Conservation Plan (NRCP), industrial units are required to install effluent treatment plants (ETPs) to treat their effluents in compliance with environmental standards established under the Environment (Protection) Act, 1986, and Water (Prevention & Control of Pollution) Act, 1974. This regulatory framework has led to significant investments in water treatment infrastructure, particularly in industries such as power generation, where wastewater contains harmful toxins including lead, mercury, arsenic, chromium, and cadmium that require proper treatment before disposal.

The concept of zero liquid discharge (ZLD) is gaining prominence across major water-polluting industries, driven by regulatory requirements and environmental consciousness. For instance, in 2023, companies like Evonik Catalysts have implemented Zero Liquid Discharge plants at their facilities in Dombivli, India, demonstrating the industry's commitment to water conservation and treatment. Similarly, Hindustan Coca-Cola Beverages Pvt. Ltd has introduced Ultra Filtration Reverse Osmosis (UFO) systems at their Effluent Treatment Plant in Khordha factory, Odisha, to improve water usage ratio and ensure only treated water is discharged. These developments, coupled with the National Green Tribunal's (NGT) orders requiring states and union territories to implement approved action plans for the restoration of polluted stretches, have significantly boosted the demand for chemicals for water purification across industrial applications.

Segment Analysis: By Product Type

Coagulants and Flocculants Segment in India Water Treatment Chemicals Market

The coagulants and flocculants segment dominates the India water treatment chemicals market, holding approximately 41% of the market share in 2024. This significant market position is driven by their extensive application in wastewater treatment across municipal and industrial sectors. These chemicals are crucial in removing suspended solids, reducing turbidity, and improving overall water quality. The segment's dominance is further strengthened by the growing adoption of these chemicals in various industries, including power generation, chemical manufacturing, and municipal water treatment plants. The effectiveness of coagulants and flocculants in solid-liquid separation processes, particularly in treating industrial effluents and municipal wastewater, continues to drive their demand across India. The chemical flocculant market is integral to these processes, ensuring efficient treatment outcomes.

pH Adjuster and Softener Segment in India Water Treatment Chemicals Market

The pH adjuster and softener segment is emerging as the fastest-growing segment in the India water treatment chemicals market, projected to grow at approximately 11% during 2024-2029. This rapid growth is attributed to the increasing awareness about maintaining optimal pH levels in water treatment systems and the critical role these chemicals play in ensuring the effectiveness of other water treatment chemicals. The segment's growth is further fueled by the expanding industrial sector, particularly in boiler water treatment applications where pH control is crucial. The rising adoption of advanced water treatment products and the growing focus on water quality in industrial processes are also contributing to the segment's rapid expansion.

Remaining Segments in India Water Treatment Chemicals Market by Product Type

The other significant segments in the market include biocides and disinfectants, corrosion and scale inhibitors, defoamers and defoaming agents, and other specialty chemicals. Biocides and disinfectants play a crucial role in controlling microbial growth in water systems, while corrosion and scale inhibitors are essential for maintaining equipment integrity in industrial applications. Defoamers and defoaming agents are particularly important in industrial processes where foam control is critical. These segments collectively contribute to the comprehensive industrial water treatment chemicals solutions required across various industries, with each serving specific purposes in water treatment applications and contributing to the overall market growth.

Segment Analysis: By End-User Industry

Municipal Segment in India Water Treatment Chemicals Market

The municipal sector dominates the India water treatment chemicals manufacturers market, holding approximately 39% of the market share in 2024. This significant market position is driven by the extensive implementation of water and wastewater treatment facilities across urban areas in India. The sector's dominance is reinforced by various government initiatives focused on improving water infrastructure, including the development of sewage treatment plants and water purification facilities. Currently, India generates around 72,368 MLD of urban wastewater daily, with only about 37% treatment capacity, indicating substantial room for growth in municipal water treatment. The implementation of programs like the Atal Mission for Rejuvenation and Urban Transformation and National Mission for Clean Ganga has further strengthened the municipal segment's position in the market.

Power Generation Segment in India Water Treatment Chemicals Market

The power generation sector is emerging as the fastest-growing segment in the India water treatment chemicals manufacturers market, with a projected growth rate of approximately 10% during 2024-2029. This robust growth is primarily driven by the sector's intensive water consumption patterns, with coal-based power plants requiring 5-7 cubic meters of water per megawatt-hour of energy generated. The expansion is further supported by the government's ambitious plans to commission over 28 GW of new coal-fired power plants by 2032, in response to the increasing power demand. The implementation of stringent water treatment regulations in power plants, coupled with the growing focus on water recycling and efficiency in power generation facilities, is expected to drive significant demand for effluent treatment chemicals market in this sector.

Remaining Segments in End-User Industry

The other significant segments in the India water treatment chemicals market include oil and gas, chemical manufacturing, mining and mineral processing, and pulp and paper industries. The oil and gas sector maintains a strong presence due to its extensive water treatment requirements in extraction and refining processes. The chemical manufacturing segment's demand is driven by the need for high-purity water in various manufacturing processes and stringent effluent treatment regulations. The mining and mineral processing sector's consumption is influenced by increasing focus on water recycling and environmental compliance, while the pulp and paper industry's demand is shaped by its water-intensive operations and growing emphasis on sustainable water management practices.