While dairy imports from the United States remain a sticking point in trade negotiations, India has reported remarkable growth in dairy exports. The world’s largest milk producer, holding a 24 per cent share of global output, saw its dairy exports rise by 80 per cent in FY25.
Despite this progress, India’s contribution to the global dairy trade remains modest at 0.25 per cent due to strong domestic demand.
However, recent figures indicate that the country is positioning itself to become a more significant player in international dairy markets.
According to India Ratings and Research (Ind-Ra), India exported 113,350.4 metric tonnes of dairy products worth $492.9 million in FY25, representing a 77.9 per cent increase in volume and an 80.6 per cent rise in value.
Butter and clarified butter (ghee) led this surge, with exports growing 142 per cent to 67,565 tonnes, compared with 27,837 tonnes the previous year.
Milk and cream exports also expanded, though at a slower pace. In contrast, milk powder exports fell significantly to 9,700 tonnes, far below FY22 levels of 49,654 tonnes.
Exports of fermented milk products also registered growth. The United Arab Emirates, Bangladesh, the United States, Saudi Arabia, and Bhutan emerged as the major destinations for Indian dairy products.
Domestic giants drive international push
Key players behind these exports include Gujarat Cooperative Milk Marketing Federation, Mother Dairy, The Punjab State Cooperative Milk Producers’ Federation, Bihar State Milk Co-operative Federation, and Britannia.
Their role underscores how India’s domestic dairy cooperatives and private sector leaders are increasingly eyeing global markets.
Ind-Ra projects India’s milk production to grow at an annual rate of 5 per cent in the medium term. From an estimated 251 million tonnes in FY25, production is expected to reach 263 million tonnes in FY26 and 277 million tonnes in FY27. By comparison, India produced 198 million tonnes of milk in FY20.
Per capita milk availability is also expected to increase. Ind-Ra forecasts a 4 per cent rise, with daily availability projected to reach 530 grams per person by FY27.
India’s rapid growth in dairy exports demonstrates its ambition to expand its footprint in the global market. However, the country faces the challenge of balancing robust domestic consumption with growing international demand.
As India strengthens its production capacity and export competitiveness, it could gradually enhance its role as a key dairy supplier worldwide.
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