In 2021, India's dairy market had a value of INR 13,174 billion. Looking ahead, IMARC Group projects that the market would grow at a CAGR of 14.98 percent from 2022 to 2027, reaching INR 30,840 billion. We are regularly tracking and assessing the direct as well as the indirect impact of the pandemic while keeping in mind the COVID-19 uncertainties. These observations are cited in the study as a significant market contributor.

Milk Processing Industry in India

In India, small and marginal farmers produce over 70% of the nation's milk. A significant portion of the Indian population receives income and employment from milk and milk products in addition to being a highly valued source of nourishment.

India has become the world's top producer of milk because of years of strategic planning and efficient program implementation by government and public sector organizations.


To fulfill anticipated demand, however, India's dairy industry has to be given new life due to the country's growing population and plateau in crop production trends. Some of the problems that must be resolved first are production, marketing, export, and infrastructure support for the expansion of the Indian dairy industry. To achieve the global quality and safety standards, dairy scientists and businesspeople should take a holistic approach to product development that includes new dimensions of value addition and more modern processing techniques.

About 4.2 percent of India's GDP as of 2020 was attributable to dairy output. According to reports, the dairy industry in India grew by 4.9 percent yearly in 2019. The Government of India reported that 187.7 million tons of milk were produced in 2018–19, with 394 grammes of milk per person per day available in India.

Current Scope

With a population of almost 300 million cattle, India produces the most milk, 198.4 million tons in 2019–20. According to CRISIL, despite COVID-19-related constraints, the organized industry is expected to develop by 5–6%, generating Rs 1.5 lakh crore in sectoral income in 2021–22. Today, milk production in India is mostly self-sufficient.

  • India is the top milk producer in the world, accounting for 23% of all milk produced worldwide. The country's milk production increased from 146.31 million tons in 2014–15 to 209.96 million tons in 2020–21 at a compound annual growth rate of roughly 6.2%.
  • The India dairy food market is made up of a variety of national and international firms who focus on creating various dairy products with added value. India's dairy products market is undergoing rapid change.
  • Both milk output and milk availability per person in India have increased steadily since the end of the White Revolution. That translates to 355 gm/day and a range from 51.4 million tons in 1990 to approximately 165.4 million tons in 2016–17.
  • From 2010 to 2016, the Indian dairy market experienced a CAGR of 13%. These factors will cause the industry to grow, and by 2022 it is anticipated to be worth more than INR 16,000 billion.
  • Key terms associated with India's dairy business from the 1950s through the 1960s include "Operation Flood," "Amul Pattern," and "White Revolution."
  • India may soon become a net importer of dairy goods due to rising domestic demand for dairy products and a widening supply-demand gap. Therefore, it is vital to find solutions to the problems the dairy business is facing and to put these solutions into action.

Future Prospects

For many years, India has been a major producer and consumer of dairy products worldwide. The Indian dairy industry has a significant potential for growth, with more than 300 million cattle and a production capacity of more than 198 million tons of milk in 2019–20. This is corroborated by research from the National Dairy Development Board (NDDB), which predicts that in 2023, demand for milk and milk products will reach 266.5 million metric tons throughout all of India. Analysts predict that between 2022 and 2027, India's dairy business will grow at a CAGR of 14.98 percent.


The national milk production goal is to reach 254.5 million tons by 2021–2022, and to bring more than 50% of milk production under the organized sector for procurement, up from the current 25%.

Producing professionals who comprehend the nature of this extremely perishable natural food product is important in order to reach these aims and improve milk handling standards. Dairy technology education offers a lot of potential in this situation.

Graduates of the B.Tech (Dairy Technology) program can find work in cooperative and private milk facilities in a variety of capacities, including purchasing milk, processing milk, and testing milk quality. Additionally, they can find work in the dairy equipment & machinery industry as well as in the food industries that deal with functional foods & infant meals. Additionally, students can obtain job in teaching, research, and extension cadre positions at colleges and universities by obtaining higher education in many disciplines of dairy science. Many graduates of dairy programs go abroad to pursue advanced degrees in dairy and food sciences. Not stopping here, there are several competitive examinations like those for the civil service, banking, etc. where graduates can compete on an equal footing.