This chemical is primarily utilized in organic synthesis, particularly in the development of pharmaceutical compounds. It serves as a key intermediate in the construction of complex molecules, especially those involving indole derivatives. Its nitro and iodo functional groups make it a versatile building block for further chemical modifications, such as cross-coupling reactions, which are essential in drug discovery and development. Additionally, it is employed in the synthesis of biologically active compounds, including potential anticancer and antimicrobial agents, due to the indole core's significance in medicinal chemistry.