• With the production of around 163.7 million MT (2016-17), India is the largest producer of milk globally.
• India’s milk production is expected to reach 180 million MT by  2020,  from current 163.7 million MT, while the demand is projected (by NDDB) to reach 200 million MT.
• The Indian dairy market is amongst the largest and fastest growing markets in the world.
• India has managed to attain top position in milk production globally owing to huge bovine population. However, the full potential of Indian milch herd still remains unattained.
• Per capita availability of milk in India has reached 352 grams per day.
• As per the NITI Aayog working group 2018 report, milk production in India will increase to around 330 million tonnes in 2032-33, and milk supply will exceed milk demand by 38 million tonnes in 2032-33
• Milk procurement by cooperatives will increase from 10 per cent in 2020 to 20 per cent in 2023, and milk procurement by the private sector will be increased from 10 per cent to 30 per cent in the same period.

• The dairy industry has been growing on average 4% annually (department of AHD&F) due to some specific growth drivers. Consequently, the food processing industry is emerging as a sunrise industry in India.
• Here, the growth drivers are the factors, which shape the industry and induce the growth of the dairy sector. The factors, which drive growth in the Indian Dairy Industry, vary at different times.
• There have been some important drivers in the past like cooperative investment, government investment, technology import and diffusion, market demand, and setting up 85 institutions. However, the present growth drivers are likely to change in future in their strength and effectiveness.
• The major drivers of growth in the year 2015 are likely to be private investment, cold chain development, cooperative investment, and market mechanisms. Milk processing technologies, extension system and farmer's training, food safety policy, and international trade regime (WTO and lowering Subsidies in US and EU) are likely to drive additional growth for Indian dairy industry

• India exported dairy products of around USD 186.71 Mn in the year 2019-20. These include products like skimmed milk powder, casein milk, cream, etc.
• From 54,828 MT in fiscal 2017-18, dairy exports rose to 1,23,877 MT in the last financial year. Skimmed milk powder saw the highest growth.
• The major destinations include UAE, Pakistan, Bangladesh, Bhutan and Nepal.

Indicative Opportunity in Dairy Sector

Technology & Equipment Suppliers

• Advanced technology equipment for increasing milk procurement efficiency, value addition for dairy products etc.

• Innovation in packaging solutions

• New product development for cattle feed

• New veterinary care technology & cattle diagnostics services

Dairy Processing Players

New product development in value added dairy products viz. cheese, smoothies, flavored milk, custard yogurt and other ethnic Indian products

• India exported dairy products of around USD 186.71 Mn in the year 2019-20. These include products like skimmed milk powder, casein milk, cream, etc.
• From 54,828 MT in fiscal 2017-18, dairy exports rose to 1,23,877 MT in the last financial year. Skimmed milk powder saw the highest growth.
• The major destinations include UAE, Pakistan, Bangladesh, Bhutan and Nepal.

Schemes of Ministry of Food Processing Industries

Scheme for Mega Food Park (MFP)

• Government of India has approved setting up of 42 MFPs in the country, out of which 41 have been sanctioned by MoFPI. Of the 41 MFPs, 9 have already commenced operations. The parks have more than 1,200 developed plots (of approximately 1 acre each) with basic infrastructure enabled, that entrepreneurs can lease for the setting up of food processing and ancillary units.
• Scheme for Integrated Cold Chain and Value Addition Infrastructure
• Scheme for Food Safety and Quality Assurance Infrastructure
• Scheme for Infrastructure for Agro-processing Clusters
• Scheme for Creation of Backward and Forward Linkages
• Scheme for Creation/Expansion of Food Processing and Preservation Capacities
• Scheme for Human Resources and Institutions

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