The India dairy market attained a value of INR 9918.00 Billion in 2024. The industry is expected to grow at a CAGR of 14.00% during the forecast period of 2025-2034. By 2034, the market is expected to reach INR 36768.22 Billion.

India's dairy industry stands as a cornerstone of its agrarian economy, with the nation being the world's largest producer and consumer of milk. India’s milk output increased by 3.83% in 2022-23, with a per-capita availability of 459 grams per day. The average daily yield per animal is 8.55 kg for exotic/crossbred cattle and 3.44 kg for indigenous/non-descript cattle. Milk production rose by 3.75% for exotic/crossbred cattle, 2.63% for indigenous/non-descript cattle, and 3.69% for buffaloes compared to 2021-22, according to the DAHD, Government of India.

Key drivers of India dairy market growth include a rising population, increasing urbanization, and a burgeoning middle class with higher disposable incomes. These factors have led to a surge in demand for both traditional and value-added dairy products. Technological advancements in dairy farming, such as automated milking systems and improved cold chain infrastructure, have further enhanced production efficiency and product quality. According to International Monetary Fund (IMF), in 2023, India's per capita income was USD 2,600 per annum. The International Monetary Fund (IMF) forecasts that this figure will rise to approximately USD 4,000 by 2028. This increase in income levels is anticipated to result in the addition of around 14 crore middle-income households and 2.1 crore high-income households in India by 2030. Additionally, the proportion of middle-income households is expected to grow from 54% in 2018 to 78% by 2030. According to the Investec Report, the rise in income levels is likely to lead to higher disposable incomes, driving consumer preference for premium and nutritious food products such as milk and milk products.

According to the India dairy market analysis, India is a significant exporter of dairy and dairy products on a global scale. According to India Brand Equity Foundation, in the fiscal year 2021-22, India exported 108,711 metric tons (MT) of dairy products, generating revenue of INR 2,928.79 crore (USD 391.59 million). Key export destinations included Bangladesh, UAE, Bahrain, Malaysia, Saudi Arabia, and Qatar. Bangladesh is the largest importer with USD 91.45 million, followed by the UAE (USD 58.66 million), Bahrain (USD 28.59 million), Malaysia (USD 25.36 million), and Saudi Arabia (USD 24.88 million). The trend of India’s dairy product exports shows a significant rise from USD 186.71 million in 2019-20 to USD 201.37 million in 2020-21, reaching USD 391.59 million in 2021-22. This upward trend reflects India's growing presence in the global dairy market and the increasing demand for its dairy products.

In 2024, the United States was the G20 country with the largest gross domestic product per capita, with ****** international dollars per capita. The international dollar is a hypothetical currency accounting for purchasing power parity (PPP), assuming that the U.S. dollar would have the same value all around the world. Saudi Arabia had the second highest GDP per capita, followed by Germany. On the other hand, India had the lowest at only ***** dollars per capita.