Calcutta, Sept. 8: The paints industry expects to maintain its growth momentum in this fiscal. The industry had grown 12 per cent in 2013-14 to Rs 31,360 crore.

“Historically, the paints industry almost always grew at least 1.5 times of GDP growth. In 2013-14, the overall production of paints in the country was estimated to be around 3,115 million litres, a growth of about 6 per cent over the previous year. In value terms, the industry is estimated at Rs 31,360 crore and it grew 12 per cent during 2013-14,” said Jayakumar Krishnaswamy, president of the Indian Paint Association.

He added that the industry was likely to grow around 12-13 per cent this fiscal.

Krishnaswamy, who is also the managing director of Akzo Nobel, said the construction of smart cities and recovery in automobile sales would be the key drivers for the sector in the coming years.

“The Centre has allocated Rs 7,060 crore this fiscal to develop 100 smart cities. This could generate a demand of 5 million new homes. A fast expanding middle class population with increasing disposable income along with the government’s mission to provide home to all within 2022 is expected to drive demand for decorative paints,” he said at the 51st annual general meeting of the Indian Paint Association here today

“Nearly 45 per cent of industrial paints produced in the country today are used in the automobile sector. With the greenshoots of recovery in the sector, it will boost demand for industrial paints,” he said.