The present study is an attempt to analyse the growth, composition, comparative advantage and competitiveness of Indian trade in dairy products during 2001-2022. Despite the largest milk producer as well as export growth, the share of quantity exported to total milk production has remained less than 0.05% indicating the heavy domestic consumption of Indian population on dairy products. Similarly, it has also remained a minor player in international market and its share of total national exports has also remained less than 1%. USA is main buying market for India’s dairy exports. During the entire time period, the country experienced no comparative advantage in export of dairy products. However, India’s exports of dairy products have been competitive during the period except 2010. In this context, the study suggested to put major emphasis on export of high-value dairy products, value addition of low value dairy products and increasing the milk yield of milch animals.

Highlights

• India, despite being the largest milk producer, exported less than 0.05% of its milk production and contributed under 1% to national exports due to high domestic consumption.
• The composition of dairy trade shifted, with rising exports of butter and milk fats and growing imports of whey and cheese; the USA remained the main export market
• India lacked comparative advantage but showed export competitiveness (except in 2010); the study suggests focusing on high-value exports, value addition, and improving milk yield.