With a market valued at INR 18,975 billion in 2024, projected to reach INR 57,001 billion by 2033 (CAGR 12.35%), the Indian dairy sector is an economic engine benefiting over 80 million farmers and capturing the attention of global investors.
This week, tax cuts, new production plants and innovative products are driving the ‘White Revolution 2.0’ – find out why India is the next big opportunity in dairy! 🥛
A Game-Changing Tax Boost
On 22 September 2025, India’s GST Council approved historic tax cuts for dairy products:
- UHT milk and paneer: from 5% to 0%.
- Butter, ghee and cheese: from 12% to 5%.
- Ice cream: from 18% to 5%.
Leading brands such as Amul and Mother Dairy have already reduced prices, which could increase sales by 10-15% in the last quarter of 2025. This move not only benefits urban consumers, but also strengthens India’s export competitiveness, which already accounts for 10% of the global dairy market.
A friend called me to say I was sounding too bullish at the GST cuts.
Please see this insight from one of the most respected marketing professionals of India, Shri R S Sodhi ji, @Rssamul
Just in the dairy segment, consumers save Rs 11,400 crores p.a. due to the GST cuts.… pic.twitter.com/j2jbehUjMG— Ajay Bagga (@Ajay_Bagga) September 4, 2025
Innovation at the forefront: Products Conquering
Urbanisation and demand for healthy foods are triggering interest in value-added dairy products.
Probiotic yoghurts, vitamin-fortified milk and even camel ice cream (launched by Amul) are gaining ground, with demand for these products expected to increase by 20% by 2024.
The recent inauguration of Sabar Dairy’s INR 350 crore plant in Rohtak (Haryana) reinforces this trend. It is India’s largest facility for yoghurt, dahi and chaas, designed to cater to both the local market and exports.
Exponential Growth: A Booming Market
The Indian dairy market is not only big, it is growing fast. From an estimated INR 10,000 billion in 2019, it is expected to reach INR 57,001 billion by 2033, according to IMARC Group. The chart below illustrates this upward trajectory:
This growth is driven by the “White Revolution 2.0”, a government initiative that has increased milk production by 63.5% since 2014, empowering millions of farmers and strengthening dairy infrastructure.
Opportunities for Investors and Consumers
The Indian dairy sector is a magnet for investment. Companies such as Hatsun Agro, Dodla Dairy and Amul offer strong moats thanks to their distribution networks and focus on innovation. For consumers, lower prices and a variety of functional products promise a richer and healthier experience.
Would you invest in the Indian dairy boom? Leave your comments!
Valeria Hamann
EDAIRYNEWS
