India’s dairy sector is poised for a major global transformation as the country targets leadership in the international dairy market by 2047 under the “Viksit Bharat” vision. According to a new EY report, India’s strong domestic demand, expanding middle class, digital transformation and rising focus on value-added dairy products are expected to drive the next phase of growth for the sector. (EY)
India is already the world’s largest milk producer, contributing over 24% of global milk production, while milk production has crossed 239 million tonnes in 2023-24. The report highlights that the country’s dairy industry is shifting from volume-led growth to value-driven expansion, with increasing demand for cheese, yoghurt, probiotic products, protein nutrition, lactose-free dairy and premium dairy offerings. Rising urbanisation, higher disposable incomes and growing health awareness are expected to further accelerate dairy consumption across India.
EY stated that India’s dairy growth opportunity lies not only in production scale but also in productivity enhancement, technology integration and supply chain modernization. Artificial intelligence, digital traceability, precision dairy farming, automated processing and advanced cold-chain systems are likely to play a critical role in improving efficiency, quality and export competitiveness. The report also emphasised the importance of sustainable dairy practices, methane reduction technologies and climate-resilient livestock systems to align with global ESG expectations. (EY)
Industry experts believe value-added dairy categories will become the biggest profit drivers for Indian dairy companies over the next two decades. Companies investing in integrated cold chains, branded dairy products, protein-rich nutrition and export-focused manufacturing are expected to gain a strong competitive advantage as India positions itself as a global dairy processing hub.
However, the report also highlights major structural challenges including low per-animal productivity, feed and fodder shortages, fragmented supply chains and infrastructure gaps. Experts noted that India must significantly improve farmer profitability, milk quality systems, processing infrastructure and global-quality compliance standards to fully capture emerging export opportunities and compete with leading dairy exporters such as New Zealand, the European Union and the United States.
Source: Dairynews7x7 14 May, 2026 Read full story here
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