As India’s dairy industry steadily expands its global footprint, the conversation is no longer centred on whether India can export dairy; it is now about how the country can build a sustainable, high-value export ecosystem. In this exclusive interview with Dairy Dimension, Bharti Singh Nagar, International Business Expert and senior leader at Paras Dairy, shares her perspective on India’s export competitiveness, emerging product opportunities, lessons from recent geopolitical disruptions in the Middle East, and the strategic roadmap required for India to become a leading dairy-exporting nation by 2030.
How do you assess the current position of India in the global dairy export landscape?
India entered the recent period of geopolitical disruption as an emerging dairy exporter with significant untapped potential. Capitalising on this shift, Amul substantially expanded its skimmed milk powder (SMP) exports to the Gulf region despite challenging logistics conditions. During the peak of the crisis, the cooperative exported approximately 2,700 metric tonnes of SMP to Dubai, compared with negligible volumes during the same period a year earlier. This performance translated into a 120% increase in export volumes.
Which dairy product categories offer the strongest export opportunities for Indian companies today?
The higher-value opportunity lies upstream. India must shift focus from raw or low-value outputs to higher-value processed dairy products — including skimmed milk powder, cheese, whey, milk proteins, and infant nutrition ingredients — which offer stronger margins and greater export potential.
Ghee is a particularly important category, where India can command a genuine premium and build a differentiated brand narrative that no European or Oceanian competitors can replicate.
Cheese exports have received increasing attention in recent years. How do you see the future of Indian cheese in international markets?
A realistic view is essential. The global cheese market is dominated by EU and Swiss producers with centuries of heritage, protected designations of origin, and deeply entrenched retail networks. India cannot — and should not — compete in aged varieties such as Gouda or Parmigiano.
India’s strength lies in two niches: first, Indian-style cheeses such as paneer, which have strong diaspora demand and are increasingly entering mainstream foodservice globally; and second, processed cheese and cheese analogues for food manufacturing, where cost efficiency and scale matter more than artisanal positioning.
Beyond cheese, which value-added dairy products hold the greatest export potential for India?
Three categories stand out.
First, A2 and speciality ghee. India’s buffalo milk base provides a natural advantage for culturally relevant products such as butter and ghee.
Second, whey protein and dairy ingredients. The global rise in sports nutrition and functional foods is driving strong demand for whey protein concentrates and isolates. India’s milk volumes provide a strong raw material base, but require greater investment in whey processing infrastructure, which remains underutilised.
Third, UHT milk and dairy-based beverages for Southeast Asian and African markets, where cold chain infrastructure is limited and shelf-stable products are preferred. Products such as paneer, ghee, UHT milk, and probiotic beverages are witnessing growing adoption, gradually shifting the revenue mix beyond traditional liquid milk.
Which international markets should Indian dairy companies prioritise over the next three to five years?
The question is no longer only where we sell, but also how reliably we reach those markets.
The strategy must focus on building Hormuz-independent export corridors.
To be direct: the 2026 Gulf conflict has not merely disrupted export planning; it has permanently altered the strategic calculus for Indian dairy exporters. Any market prioritisation strategy that does not account for maritime and geopolitical risk is incomplete.
What are the key strengths that make Indian dairy exporters competitive in the global marketplace?
India’s competitive advantages are structural and durable.
- Scale of production: Milk output increased by 71.56%, from 146.3 million tonnes in 2014–15 to 251 million tonnes in 2024–25, with an annual growth rate of 5.7%, far above the global average of 2%.
- Cost competitiveness: Indian dairy products are priced lower than those from Europe and North America, providing an advantage in price-sensitive markets without undermining producer margins.
- Cultural and diaspora demand: Products such as ghee, paneer, and dahi have strong cultural relevance across South Asia, the Gulf, and diaspora markets in the UK, USA, Canada, and Australia.
- Brand strength: Cooperatives such as Amul and Paras Dairy have built strong international recognition, particularly among expatriate communities and niche local markets.
How has the ongoing Middle East situation affected dairy trade, customer demand, logistics, and export planning?
The situation in the Middle East has been a double-edged development — disrupting supply chains while reinforcing India’s role as a reliable alternative supplier.
On the disruption side, instability in the Strait of Hormuz has increased energy and fertiliser costs, adding pressure on dairy producers already facing margin compression. For exporters, higher freight costs and container shortages have further squeezed margins, especially for bulk commodities such as SMP and butter.
India exported around 5,000 metric tonnes of SMP to Dubai during the peak crisis period, compared with virtually no shipments in the same period a year earlier — representing a sharp recovery in volumes.
When the 2026 Gulf conflict disrupted shipping routes and made marine insurance prohibitive, most exporters paused shipments. Paras Dairy’s Managing Director, Mr Rajendra Singh, continued dispatches without insurance coverage, assuming full commercial risk — reflecting a high-trust approach in international dairy trade.
What are the biggest challenges currently facing Indian dairy exporters?
Several structural challenges need urgent attention.
Cold chain infrastructure gaps remain the most critical constraint. Without reliable cold chains from farm to port, scaling high-value perishable exports remains difficult.
Export concentration is another vulnerability. A large share of exports is still limited to ghee, butter, and SMP, accounting for nearly three-fifths of shipments. Concentration in low-margin commodities leaves India exposed to global price volatility.
Regulatory and compliance requirements are also tightening, especially in the EU and UK, where food safety, traceability, and sustainability standards are becoming more stringent.
Geopolitical risks — including tariff uncertainty and fluctuating demand in markets such as Bangladesh — add further external volatility.
What strategic investments or policy changes would help India strengthen its dairy export competitiveness?
A multi-pronged approach is required.
Cold chain infrastructure must be scaled rapidly, with stronger implementation of schemes such as PLI and PMFME to connect production clusters with export-ready storage and logistics networks.
Quality and compliance systems must be upgraded to meet global standards for food safety, traceability, and sustainability.
Trade policy should prioritise South-South partnerships, with faster progress on agreements with ASEAN countries and African blocs, where cultural alignment and lower barriers exist.
R&D investment in whey proteins, lactoferrin, dairy peptides, and infant nutrition ingredients is essential to move up the value chain.
Looking ahead, what is your vision for India’s role in global dairy trade by 2030?
By 2030, India has the potential to rank among the top five global dairy exporters by value, not just volume. This would require scaling export value from approximately USD 490 million today to USD 3–5 billion.
Future demand will increasingly focus on organic dairy, A2 milk, and speciality cheeses. At the same time, cross-border e-commerce will enable Indian dairy brands to reach global consumers directly.
The opportunity is significant. The constraint is not production capacity, but execution — particularly in quality systems, compliance readiness, and brand building. India’s 2030 dairy export vision is not aspirational; it is achievable with coordinated industry and policy action.
Disclaimer: The views and opinions expressed in this interview are solely those of the interviewee in her personal capacity and do not necessarily reflect the views, policies, or positions of her employer or any affiliated organization.
Bharti Singh Nagar is an International Business Expert and senior executive at Paras Dairy (VRS Foods Ltd.), where she has spent over a decade leading international business development and expanding the company’s global dairy footprint. With extensive experience in export markets, value-added dairy products, and international customer relationships, she has been instrumental in positioning Indian dairy products in key overseas markets while advocating for quality, innovation, and long-term competitiveness.