India Leads Global Milk Production with 25% Share

India’s dairy journey has been one of transformation and resilience. After Independence, the country faced a severe milk shortage and had to import milk to meet demand. During the 1950s and 1960s, milk production grew slowly by just 1.64% and 1.15% respectively despite having the largest cattle population in the world.

The real change began in 1965 with the formation of the National Dairy Development Board (NDDB) under Dr. Verghese Kurien, famously known as the Father of the White Revolution. NDDB launched Operation Flood, a national initiative to replicate the cooperative dairy model of Anand (Amul). This movement transformed India into a self-sufficient and world-leading milk producer.

India at the Top: 25% of Global Milk Output

India now contributes 25% of the world’s milk production, recording 230.58 million tonnes in 2022–23 a 58% increase from 2014–15. For the past decade, milk output has been growing at around 6% annually. The top five milk producing states are: Uttar Pradesh – 15.72%, Rajasthan – 14.44%, Madhya Pradesh – 8.73%, Gujarat – 7.49% and Andhra Pradesh – 6.70%. Together, they contribute over 53% of India’s total milk output. In 2023–24, India also exported 63,738.47 MT of dairy products, worth $272.64 million, reflecting the country’s growing global presence.

Dairy Product Growth Projections (2025–2030)

Product	Projected CAGR
Milk	5.5%
Ghee	5.2%
Curd	6.8%
Yoghurt	11.0%
Ice Cream	9.8%
Cheese	13.5%
Paneer	7.8%
Flavoured Milk	9.0%

Government Efforts to Strengthen the Sector

The Indian government has launched several programmes to enhance milk production, processing, and marketing:

1. Rashtriya Gokul Mission
Aims to improve native cattle breeds and boost milk yield using advanced techniques like IVF, sex sorted semen, and genetic selection. The mission targets a rise in milk output from 198.4 MT in 2019–20 to 300 MT by 2024–25, benefiting over 8 crore dairy farmers.

2. National Programme for Dairy Development (NPDD)
Introduced in 2014 and revamped in 2021, NPDD supports infrastructure for quality milk production, collection, and marketing. With a budget of ₹1,790 crore, it seeks to expand the organised dairy sector’s share.

3. Dairy Entrepreneurship Development Scheme (DEDS)
This initiative provides financial support to small entrepreneurs for setting up dairy units, processing, storage, and marketing facilities, promoting self-employment in rural areas.

4. Animal Husbandry Infrastructure Development Fund (AHIDF)
A ₹15,000 crore fund designed to boost dairy processing, animal feed production, and value-added product infrastructure.

Emerging Trends in India’s Dairy Industry

1. Rising Milk Production Through Technology : Modern techniques like precision feeding, IoT-based animal health monitoring, and automated milking have increased productivity and milk quality. The expansion of cold chain infrastructure ensures product freshness and reduces spoilage, enabling a shift towards value added products such as cheese, yoghurt, and probiotic drinks.

2. Growing Demand for Value Added Products : Indian consumers are increasingly choosing health oriented and convenient dairy options such as cheese, yoghurt, and flavoured milk. Rising incomes and health awareness have pushed dairy companies to focus on innovation and new product development. Whey protein hydrolysates, used in nutritional supplements and health foods, are gaining popularity due to better digestion and nutrient absorption. However, challenges like taste and allergies remain areas for improvement.

3. Technological Transformation: Automation, AI, and IoT are revolutionising every stage of the dairy supply chain from farm management to packaging. These tools help improve productivity, reduce costs, and maintain food safety. Cold chain and digital traceability technologies are also ensuring milk quality from farm to consumer.

Recent Innovations and Patent Trends

• Whey Protein Hydrolysates: Companies like Arla Foods and Feihe Dairy have developed methods to enhance taste, stability, and nutritional value. Jiangnan University and Moringa have focused on improving digestibility and extending shelf life in whey based beverages.
• Gut Health HMObiotics: Inspired by the health benefits of human breast milk, firms such as Danone, Nestlé, and Abbott are creating HMO probiotic blends that support digestive and immune health for infants and adults.
• Shelf Stable Probiotic Yoghurt: Dairy giants like Bright Dairy, Mengniu, and Yili are developing shelf stable yoghurts that retain live probiotics without refrigeration ideal for modern, mobile lifestyles.
• Vegan Cheese Innovations: As plant based diets grow, companies including Kraft Foods, Bunge SA, and Ajinomoto are improving the meltability and texture of vegan cheese using starch modification and enzyme treatment.

Challenges and the Road Ahead

Although India leads in milk production, animal productivity remains low. Better cattle nutrition, crossbreeding, and disease control can enhance yields. Currently, only 30% of milk is processed in the organised sector, but this could increase to 50% in the next decade. Farmers need training in clean milk production to reduce contamination, while stricter laws are needed to curb adulteration and synthetic milk. Indigenous dairy sweets also require improved packaging and mechanisation to meet hygiene and export standards. Organic milk production and antibiotic free milk are emerging priorities for a healthier market. According to Rabobank, value added dairy products like yoghurt, paneer, cheese, and baby food are expected to grow by 20–30% in the next five years. Major global players like Fonterra are exploring partnerships in India, while foodservice chains such as McDonald’s, Domino’s, and Pizza Hut continue to drive demand for high-quality dairy ingredients.