India Boosts Dairy Sector with $13.3B Investment, Eyes Global Market
India, the world's largest milk producer, is boosting its dairy sector. Dairy contributes 5% to the national economy and employs over 80 million farmers directly. Exports reached INR 1,491.66 crore (USD 201.37 million) in 2020-21, with the UAE, Bangladesh, USA, Bhutan, and Singapore as major destinations.
The Government of India has allocated INR 9,800 crore for the dairy sector over the next five years, aiming to leverage a total investment of INR 54,618 crore. The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) is set to create global champions and increase employment. Additionally, a Dairy Processing and Infrastructure Development Fund (AHIDF) of INR 15,000 crore has been announced to facilitate private sector investments in processing and value addition infrastructure.
India's dairy production is dominated by indigenous breeds. Buffaloes contribute 45% and cows contribute 20% of the total milk production. The global dairy products market, valued at USD 481.08 billion in 2019, is expected to grow at a CAGR of 2.5% from 2020 to 2027.
With these initiatives, India aims to strengthen its position in the global dairy market. The focus on public-private partnerships and concessional credit is expected to enhance private investment in the sector. This will not only boost the economy but also create more employment opportunities.
Read also:
- HLC Approves ₹4,645.60 Crore for Flood Recovery and Wetland Rejuvenation in Nine States
- Crooked House Pub's Demolition: Council Orders Rebuild, Debate on Historic Building Protections
- Shaping India's Economic Progression: Readying the Financial System for Tomorrow
- Conflict between Ben & Jerry's co-founder and Unilever over Gaza issues leads to resignation of co-founder
