India’s dairy industry is expected to maintain 15 per cent compounded annual growth (CAGR) over 2016-20, and attain value of Rs 9.4 trillion on rising consumerism, a report said.

India’s dairy industry is worth Rs 5.4 trillion by value, having grown at 15 per cent CAGR during 2010-16. Going ahead, the dairy industry is expected to maintain 15 per cent CAGR over 2016-20, and attain value of Rs 9.4 trillion on rising consumerism, EdelweissBSE 0.05 % Securities said in a report.

India has progressed from being deficient in milk production at 20 million MT in 1970 to becoming the world’s largest milk producer at 160 million MT, accounting for 18.5 per cent of global milk production.

Further, India is expected to emerge as the largest dairy producer by 2020, the report said.

The Union government implemented the Central Scheme National Dairy Plan – Phase 1 during 2012-17 to improve productivity of dairy cooperatives through several input activities. Investments by private players in the domestic dairy sector is also expected to further augment milk productivity, it explained.

Going ahead, India’s milk production is expected to outperform global production and grow at a similar 4.2 per cent CAGR to 185 million MT per annum, and surpass EU to emerge the largest dairy producer by 2020.