Primarily used in organic synthesis, this compound serves as a key intermediate in the production of pharmaceuticals and agrochemicals. It is particularly valuable in the development of indole-based compounds, which are known for their bioactive properties. Researchers utilize it to create potential drug candidates targeting various diseases, including cancer and neurological disorders. Additionally, it plays a role in the synthesis of dyes and pigments due to its unique structural properties. Its halogenated indole structure makes it a versatile building block for complex chemical reactions in medicinal chemistry.