Crisil Ratings in its latest report has said that India's complex fertiliser manufacturing capacity is projected to increase by 25 per cent in the next three fiscal years (FY27, FY28 and FY29), which is likely to reduce the country's import dependency and boost self-reliance. It noted that the country’s complex fertiliser manufacturing sector is set for a major expansion, with an additional 4 million tonnes per annum (MTPA) capacity expected to be added by FY29, over the current base of 16 MTPA, as capacity utilisation has shot up due to negligible capacity addition in the past seven years amid steadily rising demand.    

Despite the capital expenditure (capex), the report said the credit profiles of manufacturers will remain comfortable, supported by healthy profitability amidst improving backward integration resulting in limited reliance on debt. It said the government's track record of timely subsidy disbursements also supports the working capital cycle of players. It added that complex fertilisers, accounting for a third of the overall domestic fertiliser consumption, provide balanced soil nutrition.

According to the report, around one-third of India's complex fertiliser requirement, particularly Di-ammonium Phosphate (DAP), is met through imports, while nitrogen phosphorous potassium (NPK) remains largely indigenously produced. In fiscal 2025, the share of NPK grades in overall complex fertilisers rose to 60 per cent, a significant increase from the 53 per cent average recorded over the preceding five fiscal years, on account of prioritisation of NPK production by domestic manufacturers due to better cost economics.