Page 21 - Dairy Dimension - Jan
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| Volume 1 | Issue 2 | Jan-Feb 2025
| Volume 1 | Issue 2 | Jan-Feb 2025 ARTICLE Table 1: Economic Growth Trends Government initiatives are significantly shaping the
Image Source: Liberty Street Economics Indicator FY23 FY24 (Est.) FY25 (Proj.) sector's growth. The Rashtriya Gokul Mission focuses on
enhancing indigenous breed productivity, while the
6.8
6.4
7.2
GDP Growth (%)
MAITRIs Program has inducted 38,736 AI technicians to
5.0
Inflation (%)
6.7
5.4
improve livestock breeding services. Financial support
Fiscal Deficit
5.5
5.9
(% of GDP)
6.4
cooperatives, which are expanding market access.
Government capital expenditure (capex) continues its measures include the establishment of over 9,000 dairy
Consumer preferences are shifting towards premium
upward trend, focusing on roads, railways, and digital dairy products such as cheese, yoghurt, probiotics, and
infrastructure. Private sector participation in flavoured milk. Cold chain infrastructure and logistics
manufacturing and services benefits from PLI incentives, modernisation are crucial for minimising wastage and
tax reforms, and ease-of-doing business initiatives. With ensuring quality compliance. However, challenges such
global inflation stabilising, India's interest rate as high input costs, inefficiencies in cold storage
environment remains conducive to growth. However, infrastructure, and regulatory hurdles in the export
food price volatility remains a concern, warranting market persist, necessitating strategic policy
continued monetary vigilance by the RBI. interventions.
Global geopolitical conflicts and the EU's Carbon Border Outlook for 2024-25: Key Takeaways
Adjustment Mechanism (CBAM) could affect export- India is projected to maintain one of the highest global
oriented industries. Trade diversification and policy growth rates, but external risks require policy vigilance.
adaptations are crucial for maintaining India's export Reducing dependence on imported raw materials
competitiveness.
(semiconductors, EV batteries) is a strategic focus.
Industrial Sector: Structural Challenges & Government incentives will continue to bolster domestic
Opportunities manufacturing competitiveness.
Prashant Tripathi India's industrial sector is projected to grow at 6.2% in Increasing milk production and cooperative networks
Director of Market Access FY25, bolstered by infrastructure, energy, and will support rural economic sustainability. Investments in
Jordbrukare India manufacturing expansion. Domestic demand sustains cold chain logistics and high-value dairy processing are
manufacturing growth, while weak external markets limit critical for enhancing profitability.
India's Economic, Industrial, and exports. Pharmaceuticals, electronics, and textiles Conclusion: A Year of Structural Transformation
leverage supply chain localisation and export
India's economic and industrial landscape is poised for
diversification. EV manufacturing and semiconductor
Dairy Sector Outlook for 2024-25: production are gaining momentum. steady growth, underpinned by domestic consumption,
infrastructure development, and policy-driven
Employing 12.41% of the organised workforce, food
manufacturing incentives. However, uncertainties such
A Critical Analysis processing is pivotal to employment and rural stability. as geopolitical conflicts, supply chain disruptions, and
Government initiatives like PMKSY and PLI schemes
climate-related risks necessitate a dynamic and adaptive
bolster sectoral investments. Public sector investments
drive demand for steel and cement, but energy costs policy framework.
As India transitions into FY 2024-25, its economic Economic Growth: A Strong Yet Cautious Expansion Enhancing value-added production, cooperative
trajectory remains robust yet fraught with challenges. India's GDP is forecasted to grow 6.4% in FY25, and raw material volatility persist as challenges. strength, and supply chain efficiency for the dairy sector
The nation is one of the world's fastest-growing underpinned by private consumption, rural demand The automobile sector has seen a 12.5% rise in domestic will be pivotal in maintaining global competitiveness and
economies, supported by government-led deregulation, recovery, and infrastructure-driven investments. While sales, indicating strong consumer interest in EVs and long-term sustainability.
infrastructure investment, and expanding industrial global growth remains sluggish at 3.2% in 2024 and 3.3% hybrids. PLI incentives and domestic battery production
capacity. However, inflationary pressures, geopolitical in 2025, India's internal dynamics provide resilience. enhance the industry's sustainability. In the electronics
uncertainties, and global trade fluctuations cast shadows Private consumption, which accounts for 60% of GDP, sector, 99% of smartphones sold in India are
over sustained growth. This critical analysis evaluates remains the linchpin of economic activity. Previously domestically manufactured, and India's semiconductor
India's economic progress, industrial development, and dampened by inflation, rural demand is rebounding due ambitions are materialising through foreign investments
the transformative shifts in the dairy sector, to higher agricultural yields and government stimulus. and policy support.
incorporating insights from the Economic Survey 2024- FMCG, consumer durables, and retail are poised for Dairy Sector: A Pillar of Rural Economic Growth
25. expansion, driven by festive and discretionary spending. ° « ¬ £ O
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