Milk occupies a central place in India’s nutritional landscape, providing high-quality animal protein and essential nutrients such as calcium, magnesium, potassium, and other micronutrients in easily absorbable forms.

Often regarded as a near-complete food, milk supports growth, bone health, and vitality across all age groups. India has consistently retained its position as the world’s leading milk producer, contributing nearly one-fourth of global output.

Over the last 11 years, India’s dairy sector has expanded significantly by 70 per cent, contributing around five per cent of the national economy and providing direct employment to over eight crore farmers. Furthermore, Women farmers play a significant role in production and collection, making dairy a strong vehicle for inclusive and gender-responsive growth.

India had a milk shortage and was dependent on imports during the 1950s and 1960s. Throughout the first decade after independence, milk production recorded a CAGR of 1.64 per cent, which fell to 1.15 per cent during the 1960s. This was despite the country having the world’s largest cattle population.

The modern dairy movement in India was built upon the success of the Anand cooperative model that had flourished under the guidance of leaders like Sardar Vallabhbhai Patel, Mahatma Gandhi, and Tribhuvandas Patel.  The National Dairy Development Board was created in 1965, with Verghese Kurien appointed as its first chairman. The Board’s mission was to replicate the Anand cooperative model across India and organise farmers into strong, village-level milk producer societies.

Building on the achievements of the Kaira District Cooperative Milk Producers’ Union, the precursor to Amul, the NDDB launched Operation Flood in 1970. This ambitious programme sought to increase rural milk production and develop a streamlined system that enabled cooperatives in milk-rich regions to supply milk efficiently to major urban markets. The initiative transformed India from a milk-deficient nation into the world’s largest milk producer. Recognising its significant national impact and contribution to dairy development, the NDDB was designated an Institution of National Importance by an Act of Parliament in 1987.

Over the past decade, India’s dairy sector has experienced remarkable growth. Milk production increased by 63.56 per cent from 146.30 million tonnes in 2014-15 to 239.30 million tonnes in 2023-24. Per-capita milk availability has also surged from 124 grams to 471 grams per person per day.

India’s dairy economy is anchored by its 303.76 million bovines, including cattle, buffalo, mithun, and yak. Between 2014 and 2022, bovine productivity grew by 27.39 per cent, the highest growth globally and significantly above the world average of 13.97 per cent.

Sheep, 74.26 million, and goats, 148.88 million, continue to make a significant contribution, especially in arid and semi-arid regions, where they support milk production. The number of milch animals has expanded from 86 million to 112 million, while milk production from indigenous cow breeds has risen from 29 million tonnes to 50 million tonnes.

This success is driven by initiatives such as the Rashtriya Gokul Mission and the Livestock Health and Disease Control Programme, which focus on enhancing breeding, improving genetic quality, and promoting animal health. Additionally, the integration of Ethnoveterinary Medicine with Ayurveda offers sustainable, low-cost alternatives to antibiotics, thereby enhancing the overall health and resilience of livestock.

The Department of Animal Husbandry and Dairying has been implementing the Rashtriya Gokul Mission since 2014, intending to conserve and develop indigenous cattle and buffalo breeds, improve the genetic potential of bovines, and enhance milk production and overall productivity.

In March, the Mission was revised to accelerate the growth of the livestock sector. It now functions as a Central Sector component of the Development Programmes scheme with an additional allocation of Rs.1,000 crore, taking the total outlay to Rs.3,400 crore for the period of the 15th Finance Commission cycle from 2021 to 2026.

The revised Mission builds upon the earlier activities while placing greater emphasis on strengthening semen stations, expanding the Artificial Insemination network, and promoting scientific breeding through sex-sorted semen and accelerated improvement programs. Through the Rashtriya Gokul Mission, India is conserving indigenous cattle breeds and improving genetic diversity. So far, over 92 million animals have benefited, supporting more than 56 million farmers.

Artificial insemination remains one of the most effective tools for boosting milk yields and productivity of bovines. Currently, approximately 33 per cent of breedable bovines in India are covered through this method, while 70 per cent of the animals are still serviced by scrub bulls with unknown genetic merit. In 2024–25, a total of 565.55 lakh inseminations were conducted across the country, marking a substantial expansion in scientific breeding practices.

Under the National Artificial Insemination Programme, free insemination services are provided at the farmers' doorstep. As of August, the programme has reached 9.16 crore animals and performed 14.12 crore inseminations, benefitting more than 5.5 crore farmers. To support advanced reproductive work, 22 IVF laboratories have been established, and more than 10 million doses of sex sorted semen have been produced, of which 70 lakh doses have already been used. This has helped farmers obtain a higher proportion of female calves and strengthen future milk output.

To bring breeding services closer to rural areas, trained Multipurpose AI Technicians known as MAITRIs have been deployed. These technicians undergo three months of training and receive grants of up to Rs.50,000 for necessary equipment, eventually becoming self-sustaining through service revenue. In the last four years, 38,736 MAITRIs have been engaged and are playing an important role in delivering doorstep veterinary and breeding services.

Scientific evaluation of bulls is carried out through progeny testing, which assesses their genetic worth based on the performance of their daughters. Between 2021 and 2024, 3,747 progeny-tested bulls were produced against a target of 4,111, and 132 breed multiplication farms have been sanctioned to ensure the availability of high-quality bovines for farmers.

Since 2014-2015, the National Programme for Dairy Development has been carried out nationwide to enhance the quality of milk and milk products, as well as to expand organised systems for procurement, processing, and marketing. The scheme has helped build and strengthen infrastructure that supports producers associated with cooperative federations, unions, and producer companies.

Over time, 31,908 dairy cooperative societies have been organised or revived, bringing in 17.63 lakh new milk producers and boosting daily milk procurement by 120.68 lakh kilograms. The programme has also led to the establishment of 61,677 village milk testing laboratories, nearly 6,000 bulk milk coolers with a total chilling capacity of 149.35 lakh litres, and the upgrading of 279 dairy plant laboratories with advanced adulteration detection technologies.

According to the state report, 1,804 new dairy cooperative societies have already been formed, generating opportunities for 37,793 milk producers during the current year.

Several major infrastructure projects were also inaugurated under this initiative in October this year. These include New Milk Powder and Ultra-High Temperature Plant in Mehsana, Indore, and Bhilwara, along with a Greenfield Dairy Plant in Karimnagar, Telangana.

Additionally, foundation work has begun for an integrated dairy plant and a cattle feed unit in Chittoor District in Andhra Pradesh with a total investment of Rs.219 crore. India’s cooperative dairy sector includes 22 milk federations, 241 district unions, 28 marketing dairies, and 25 Milk Producer Organisations. Together, they serve 2.35 lakh villages and connect 1.72 crore dairy farmers, ensuring fair prices and efficient milk processing.

Women remain central to this ecosystem, comprising around 70 per cent of the dairy workforce and 35 per cent of cooperative members. Over 48,000 women-led cooperatives and 16 all-women MPOs managed under NDDB Dairy Services represent nearly 1.2 million producers across 35,000 villages. The all-women Shreeja Milk Producer Organisation, Andhra Pradesh, stands out as the symbol of empowerment, having won the Dairy Innovation Award from the International Dairy Federation at the World Dairy Summit in Chicago.

India’s dairy sector received a major boost when the 56th GST Council approved a broad set of tax rationalisations on milk and milk products during its meeting on 3rd September. This decision represents one of the most extensive revisions of GST rates for the dairy industry, ensuring that many widely consumed products are now either exempt from tax or placed in the five per cent bracket.

The revised rates, which came into effect on 22nd September, provide substantial relief across the value chain. Ultra-High Temperature milk and pre-packaged paneer are now tax-free. Items such as butter, ghee, dairy spreads, cheese, condensed milk, and milk-based beverages have all been shifted from the 12 per cent slab to the five per cent slab. Ice cream, which previously attracted an 18 per cent GST, has also been reduced to five per cent. Additionally, milk cans are now taxed at five per cent instead of 12 per cent.

This reform is expected to strengthen the dairy economy by easing the financial load on both producers and consumers. Over eight crore rural households, many comprising small, marginal, or landless farmers who rely on dairy farming for their livelihoods, will directly benefit from the reduced tax structure. The lower tax structure is also likely to reduce operational costs, curb adulteration and enhance the competitiveness of Indian dairy products in both domestic and international markets.

The launch of the Standard Operating Procedure for White Revolution 2.0 on 19^th September last year, followed by its formal rollout on 25^th December in 2024, signals a renewed national effort to strengthen dairy cooperatives, expand employment opportunities, and increase women's participation in organised dairying. The programme will run for five years from 2024–25 to 2028–29, during which milk procurement by cooperatives is projected to rise to 1,007 lakh kilograms per day.

A central feature of the initiative is the expansion of the cooperative network through the creation of 75,000 new dairy cooperative societies. These societies will be set up across villages that are still outside the organised dairy system, with a strong emphasis on enrolling women farmers. Alongside this expansion, 46,422 existing Dairy Cooperative Societies will be strengthened to deliver better services and improve the incomes of their members.

White Revolution 2.0 also places a strong focus on sustainability and efficient resource use. Three specialised Multi-State Cooperative Societies are being established. One will supply cattle feed, mineral mixtures, and other essential inputs. Another will support the production of organic manure and promote the scientific use of cow dung and agricultural residues to produce biofertilizers and biogas, contributing to natural farming and a circular economy. The third will manage hides, bones and horns of fallen animals in an organised and environmentally responsible manner.

Built at a cost of about Rs.350 crores, Sabar Dairy Plant in Rohtak of Haryana, is now the country’s largest plant dedicated to the production of curd, buttermilk, and yoghurt. It has been developed to support milk producers and will enable Haryana to meet the entire demand for dairy products of the Delhi National Capital Region.

Sabar Dairy, which began as a cooperative initiative in Gujarat, has now expanded its operations across nine states and continues to open new avenues for farmers. The cooperative movement it represents has empowered 35 lakh women who together conduct annual business worth Rs.85,000 crores in Gujarat alone.

The Rohtak plant is designed with substantial production capacity to produce 150 metric tonnes of curd, 10 metric tonnes of yoghurt, three lakh litres of buttermilk and 10,000 kilograms of sweets every day. This scale of production is expected to enhance farmers’ incomes and strengthen the cooperative dairy network in states including Rajasthan, Haryana, Maharashtra, Punjab, Uttar Pradesh and Bihar.

According to the monthly dashboard from the Agricultural and Processed Food Products Export Development Authority for September, India’s milk production is expected to rise steadily in the coming years due to strong domestic demand, improvements in breeding practices, and a favourable policy. The growing use of advanced tools such as artificial intelligence and sexed semen has helped farmers achieve higher yields by improving herd quality and enhancing productivity.

India is expected to contribute approximately 32 per cent to the global milk supply in 2025-26, reflecting its position as the world’s largest milk producer. According to APEDA, the monthly dashboard for Dairy, Projections for 2026 estimate national milk output at 242 million tonnes. The country also continues to lead in cattle population, recording a stable increase from 35 per cent in 2024 to 36 per cent in 2025, which reinforces the long-term resilience of its dairy sector.

India aims to increase its milk Processing Capacity to 100 million litres by 2028-29, a significant rise from the present level of 660 lakh litres per day. Comprehensive livestock data is being compiled through the Pashudhan initiative, which will support better planning and targeted interventions. Considerable progress is being made in breed improvement, and large-scale vaccination drives are underway to protect cattle from Foot-and-Mouth Disease and Brucellosis. These vaccines are being provided free of cost, with a national goal to eradicate both diseases by 2030. Together, these efforts are expected to enhance productivity, strengthen the value chain, and position India to emerge as a leading exporter of milk in the near future.

Overall, the growing prominence of women-led cooperatives, large-scale producer organisations, and major dairy institutions, such as Amul and Sabar Dairy, underscores the sector's inclusivity and its increasing economic impact.