Primarily used in organic synthesis, this compound serves as a key intermediate in the development of pharmaceuticals and agrochemicals. It is particularly valuable in the synthesis of indole derivatives, which are crucial in creating compounds with potential anti-inflammatory, antiviral, and anticancer properties. Additionally, its nitro and ester functional groups make it a versatile building block for further chemical modifications, enabling the creation of complex molecules for research and industrial applications. It is also employed in the study of biochemical pathways and receptor interactions due to its structural similarity to naturally occurring indole compounds.