The dairy industry plays an important role in the socio-economic development of India. The dairy industry in India is instrumental in providing cheap nutritional food to the vast population of India and also generates huge employment opportunities for people in rural places.

 

The Department of Animal Husbandry, Dairying, and Fisheries, which falls under the central Ministry of Agriculture, is responsible for all the matters relating to dairy development in the country. This department provides advice to the state governments and Union Territories in formulating programmes and policies for dairy development. It also looks after all the matters relating to production and preservation of livestock farms (cattle and sheep). To keep focus on the dairy industry a premier institution known as the National Dairy Development Board was established. This institution is a statutory body that was established in 1987. The main aim to set up the board was to accelerate the pace of dairy development in the country and attract new investments.

 

India is a wonderland for investors looking for investment opportunities in the dairy industry. The dairy industry of India holds great potential for investment and promises high returns to the investors.

 

The reasons why the industry has huge potential for attracting new foreign investment are:

 

1. There is a basic raw material need for the dairy industry; that is, milk is available in abundance.
2. India has a plentiful supply of technically skilled laborers.
3. There is an easy availability of technological infrastructure.
4. India has all the key elements required for a free market system.

 

There are different sectors within the dairy industry that promise great business investment opportunities:

 

• Biotechnology:

1. The Indian cattle yield less milk as compared to their foreign counterparts. The Indian cattle breeders are on the lookout for ways to improve their milk yield through cross-breeding. Thus, there is a huge potential available for foreign investors to invest in dairy cattle breeding of high-quality buffaloes with hybrid cows.
2. There is also great scope for investment in different dairy cultures, including dairy biologics, enzymes, probiotics, and other coloring materials for food processing.
3. Producing biopreservative ingredients based on dairy fermentation, such as pediococcin, aciophilin, bulgarican, and Nisin contained in dairy powder, also promise great investment opportunity.

 

• Dairy/Food Processing Equipment:

Great potential lies for foreign investment for manufacturing and marketing of cost-effective, top-quality food processing machinery.

• Food Packaging Instruments:

There is a tremendous investment opportunity for foreign investors in the manufacturing of both machinery and packaging materials that aid the development of brand loyalty and gives a clear edge in the marketing of dairy products.

 

• Retailing:

Retailing of dairy products also promises great investment opportunities for standardization and upgrading dairy products in the main metropolitan cities.

 

• Manufacture of Ingredients:

Several ingredients are involved in the making of different dairy products like ghee, condensed milk, and cheese. Manufacturing of ingredients for these products offers a great potential for foreign investment.

 

• Finished Products:

There is a great scope for investment in the manufacturing of finished dairy products such as cheese sauce and cheese powders.

 

• Technically Advanced Manufacturing Units:

There is a great opportunity for foreign investors to invest in establishing manufacturing units for dairy products. The investors can build world-class manufacturing units and let them for hire. Building manufacturing units supports specialized dairy-related activities, such as cheese slicing, cheese packaging, butter printing, and dicing lines, which hold greater potential over other activities.

 

Thus, the dairy industry in India has huge investment opportunities in a variety of sectors. The investors are all set to gain profitable returns on their investment.