In the third in depth country study, the Babcock Institute study team discusses India’s dairy sector. India is an interesting case study because it has the world’s second largest population making it the world’s largest milk-producing country. The country’s main system of dairy productions involves a smallholder production system in which most of the milk produced is consumed on the farm or distributed through informal channels. This system of production, combined with Indian policies that encourage self-sufficiency and restrict dairy imports, leaves much unused potential in the Indian dairy market.