This compound is primarily utilized in the synthesis of organic dyes and pigments, particularly in the production of colorants for textiles and plastics. Its indole structure makes it a valuable intermediate in the development of fluorescent dyes, which are widely used in biological staining and imaging applications. Additionally, it serves as a key building block in the creation of pharmaceuticals, especially in the design of compounds with potential anti-inflammatory and antimicrobial properties. Its carboxylic acid group allows for further functionalization, making it versatile in various chemical reactions and industrial processes.