India being an agricultural country, dairy farming was considered as an ancillary activity till a quarter century back. Since 1998, there has been a change in scenario with the country stepping up as the leading producer and consumer of dairy products on the world stage. This has been possible due to the sustained growth in availability of milk and milk products.

Dairy farming is a vital aspect of the rural Indian economy, providing jobs and creating lucrative commercial opportunities. According to IMARC Group's latest study, the dairy market in India has achieved a value of INR 11,357 billion in the year 2020 alone. Furthermore, nearly all of India's dairy products are consumed domestically, with fluid milk accounting for the majority of sales. As a result, the Indian dairy business has enormous potential for value addition and overall growth in times to come.

India also has the world's largest bovine population. Thus, the dairy sector plays a seminal role in the agri-economy of this country and is lifeline to over 70 million dairy farmers. Also, milk is the most accessible and nutritious food, especially for weaker sections of the society. Hence, strengthening this unorganized domestic set-up is the primary requirement for overall development of this sector.

Despite India being a largest milk producing country in the world, there is an urgent need to organize and proactively strengthen the domestic dairy sector. Even then several studies have asserted that we are in a highly advantageous position, especially in the milk deficit neighborhood of south-east Asia. Also considering the shifting focus of the dairy industry towards a wide global trade, it becomes all the more imperative for us to create an optimum structured system in this industry.