By Dairy Dimension Editorial Team
May 28, 2025

India is on course to achieve $1 trillion in exports of goods and services in the financial year 2025–26, according to the Federation of Indian Export Organisations (FIEO). The projection reflects strong momentum across key sectors, but for India’s dairy industry, it raises an important question: Can dairy punch above its weight in export contribution?

📦 Export Outlook: A Robust Climb

FIEO President S C Ralhan announced that India’s merchandise exports are expected to rise from $437 billion in FY24–25 to $525–535 billion in FY25–26. Services exports are also forecast to grow from $387 billion to $465–475 billion, taking the total projected exports to just under $1 trillion.

Despite global economic headwinds, India posted total exports worth $825 billion in FY24, marking a 6.01% year-on-year increase. Merchandise exports remained stable at $395.63 billion, while non-petroleum exports saw a 6.43% rise—an encouraging sign of diversified export strength.

🔍 Sector-Wise Export Projections (FY2025–26)

Notably, dairy and animal-origin products are not yet part of this top-tier league.

🥛 Dairy’s Contribution: Small in Value, High in Potential

According to Ministry of Commerce data, India's dairy exports—including products like ghee, butter, SMP, casein, and lactose derivatives—typically generate between ₹4,500–6,000 crore (approximately $0.55–0.70 billion) annually.

🌍 Key Dairy Export Facts:

• Top destinations: UAE, Bangladesh, Bhutan, Oman, Egypt
• Fast-moving items: Ghee, butter oil, casein, milk proteins
• Emerging opportunities: Free trade corridors with GCC, Africa, and Southeast Asia

As India deepens its agri-export ambitions, value-added dairy offers a high-growth lever, especially for rural and cooperative-led economies. However, exporters face barriers related to regulatory compliance, shelf-life, traceability, and DPP (Digital Product Passport) readiness.

🏛 Policy Recommendations

FIEO has called upon the Indian government to:

• Set up sector-specific task forces to understand global DPP norms
• Develop a digital infrastructure for exporters to generate compliance documents
• Offer grants and technical support to MSMEs and cooperatives for adopting lifecycle and traceability systems
• Facilitate dairy-specific export zones with cold chain and packaging innovation clusters

📈 The Road Ahead

India’s dairy industry may currently contribute less than 1% to the country’s total export basket, but it holds immense potential—both as a rural growth engine and a global brand ambassador for Indian nutrition and heritage. As India eyes the $1 trillion milestone, dairy’s next leap will depend on strategic support, smart incentives, and global alignment on quality and compliance.

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