Uttar Pradesh’s government has unveiled a bold, investor-friendly roadmap aimed at transforming the dairy industry. Currently producing 1,062 lakh litres per day—accounting for 16% of India’s milk output—the state plans to triple production, create over 1 crore rural jobs, and emerge as a major global dairy exporter by 2047. Central to this strategy are significant GST reforms: UHT milk and packaged paneer are now GST-free, while butter, ghee, cheese, and ice cream enjoy reduced GST rates of 5% (from 12–18%)—making dairy more affordable and processing more profitable. The government is supporting this push with tax exemptions, grants, and streamlined investment facilitation. These efforts align with the wider “Viksit UP @2047” vision, aimed at transforming the state into a $1 trillion economy.
Industry Insight
This multi-pronged initiative signals a pivotal moment for India’s dairy value chain. With enhanced affordability for consumers, improved economic incentives for producers, and streamlined investment pathways, UP is positioning itself as a commanding force in both domestic consumption and export markets. Stakeholders must act now to align with this trajectory—by scaling operations, adopting value-add processing, and leveraging cooperative models to harness the sector’s full potential.
Source : Dairynews7x7 Sep 10th 2025