Indian Dairy’s Global Bet

CORE CONVERSATION

Why India’s Next Big Export Could Be Paneer, Not Powdered Milk

India is the world’s largest milk producer and the second largest consumer. Earlier, much of India’s dairy industry was dominated by cooperatives such as Amul or Nandini. However, things are changing as more Indian dairies are looking to export.

According to dairy industry veteran Rajiv Mitra, the split in the industry between cooperatives and the private sector stands at 50-50.

While there is protectionism in the industry, Mitra said it won’t be there for long. “The private sector has come ahead, the private sector has invested, the private sector has grown in shape and size, the private sector has grown in trust with the consumer… This indicates that going forward, this protectionism is not going to stay,” Mitra said.

While India continues to predominantly consume dairy as milk in pouches, the rest is used for producing ingredients and milk products.

“And then you have the value-added products like consumer cheese, like ghee, like paneer. Paneer is gaining ground, like curd. OK, curd also in the Indian context would be or yoghurt will be a value-added product,” Mitra said.

Paneer Is Having A Moment

India exports less than 1% of what it produces, but the popularity of products like paneer and yoghurt abroad is changing that.

“My bet would be to start with, say, paneer is a huge interest area, then it will be yoghurt, then it will be cheese, then it could be many other variations, varieties of things, you know, half-cooked, semi-cooked and a lot of ready-to-eat material can be sent,” Mitra said.

India may have an upper hand with the know-how of paneer making, but it still needs expansion of capabilities and technology to make it bigger in the world dairy sector.

“So the path forward in terms of consumer value add is huge, is immense. And India has built, the private sector has built huge capacities for that to see that, I mean, to cater to the demand that is to come. And it is going to come because now the world is more open,” Mitra said.

Mitra also explained the challenges of exporting value-added dairy products and how India, as the world’s biggest producer of milk, could dominate this sector globally.

DECODE THE NEWS

Trump’s Tariffs Can Threaten Asia’s Aviation Comeback

What?

Just as Asia’s aviation sector was regaining momentum post-pandemic, new trade barriers threaten to undo its recovery.

Tariffs announced by US president Donald Trump have led to aircraft delivery delays and higher costs for parts sourced globally, including from countries like India.

“The outlook for the Indian aviation market is very bullish, but there are supply chain disruptions. issues being faced by airlines,” Subhas Menon, director general of the Association of Asia Pacific Airlines (AAPA), said in an interview with The Core.

This is also leading to increased costs for aircraft manufacturers Boeing and Airbus, which rely on international suppliers for critical components.

Where Does India Stand?

India, one of the fastest-growing aviation markets in the world, is particularly affected. Airlines are facing longer wait times for new aircraft and essential components.

Boeing, for instance, sources $1.2 billion annually from 320 Indian suppliers and is experiencing increased costs due to the 26% tariff on imports from India. This has raised concerns about long-term competitiveness and job creation in the aerospace sector.

Indian carriers, in particular Air India and Akasa, are said to be monitoring the situation as delays could impact expansion plans and fleet upgrades.

Indian carriers such as IndiGo, Air India and Akasa Air face a backlog of around 1,700 aircraft, with deliveries expected to be spread over the next decade because of delays due to global supply chain disruptions.

What Next?

AAPA has flagged regulatory inconsistencies and rising taxes across the Asia-Pacific region, including India’s GST enforcement and restrictive bilateral air traffic rights.

Airlines face mounting cost pressures due to uncoordinated rules, high airport charges, and delayed pilot recertifications.

What does the AAPA suggest to improve the situation for airlines in Asia amid global turmoil?

MESSAGE FROM OUR SPONSOR

CORE NUMBER

300 million

That’s the combined subscriber base of JioCinema and Disney+ Hotstar as of mid-2025, overtaking Netflix’s India count, according to PTI. This milestone follows their merger in November 2024 into a joint venture now called JioHotstar.

📉 How it happened:
Jio’s aggressive pricing — as low as Rs 29 and Rs 89 — helped it acquire massive scale ahead of the merger. The cricket-driven streaming boom also played a role.

📊 The bigger picture:
The 2025 IPL season marked a turning point. Digital viewership hit 652 million, surpassing TV’s 537 million. With cricket as fuel, JioHotstar has redefined India’s online streaming game.

Big Bets Beyond China. Foxconn, Apple’s primary assembler, is redirecting billions in investments away from China, betting big on India and the US. It reflects a strategic pivot amid geopolitical uncertainty.

By The Numbers: Over $2.2 billion in new investments were cleared—$1.49 billion will flow into India via Foxconn’s Singapore arm, and $735 million will fund a US-based company focused on data centre modules and server assembly.

Background: This comes even as Trump has warned against manufacturing iPhones in India. In May, Foxconn announced a $1.5 billion component factory near Chennai. Reuters reported that the company shipped iPhones from India worth $3.2 billion in March-May amid Trump’s tariff threats.

SEBI Gets Tough on Broker Oversight: India’s market regulator, the Securities and Exchange Board of India (SEBI), has tightened rules for trading members — which include brokerages and trading houses — after inspections revealed violations of compliance norms.

Catch Up Quick: SEBI has asked stock exchanges to ensure these entities take corrective steps quickly. Firms that fail to submit compliance reports in time could face fines, bans on adding new clients, and even have their trading terminals shut down.

What This Means Going Forward: Starting July 1, the exchanges will actively monitor and verify broker compliance. Any discrepancies found later could lead to stronger penalties.

Used Car Trust Breakdown: A survey of 9,000 car owners found that 77% of first-time buyers chose new cars over used ones, citing legal hassles, inflated pricing, and poor RC transfer processes as key deterrents. Nearly 81% said used car prices were artificially high, while 65% dropped out due to bad peer reviews and online experiences.

Catch Up Quick: Interestingly, 73% said they trusted local dealers more than organized used-car platforms, valuing transparency, personal negotiation, and human connection.

What This Means Going Forward: As doubts over organised platforms grow, offline dealers may remain the go-to for used car buyers. The survey was conducted by commercial parking management platform Park+.

PODCAST

On Episode 616 of The Core Report, financial journalist Govindraj Ethiraj talks to Vikas Jain, Co-founder and Chief Investment Officer at Multipl

• Markets gain for second day on Israel-Iran truce

• Oil prices stay down.

• How mutual investors are diversifying their holdings on the back of record SIPs

• One in four Indians say they use only mobile phones to consume media content

👥 THE TEAM

✍️ Zinal Dedhia, Salman SH, Kudrat Wadhwa | ✂️ Rohini Chatterji | 🎧 Joshua Thomas