Australia's dairy industry is banking on rising milk demand in India to increase pressure for greater access to the lucrative market, the world's largest milk producer.
India's domestic output accounts for 15 per cent of global milk production or 135 billion litres.
But India is now facing a challenge of rising demand in the near term.
Currently demand is growing at seven per cent a year but production is rising by just four per cent, with India set to become a net importer by 2020, says agriculture services provider, Cargill.
Australian dairy exporters are pressing the federal government to push for a free trade agreement with India in the face of stiff tariff barriers of between 30 and 60 per cent on dairy products.
The peak body Australian Dairy says a free trade agreement with India with concessions around dairy tariffs "would definitely be a start".
Peter Myers, Dairy Australia's International Trade Development manager, says access to India's market remains a challenge for Australian exporters.
"Australia became a complementary supplier into India, not competing with the traditional market," he told AAP.
Mr Myers said Australia diary exporters are presently targeting India's growing middle class set to reach 200 million by 2020, from about 70 million.
He says as India becomes more sophisticated, its rising middle class as well as women entering or returning to the labour force can act as a spur to growth for milk products.
Australian dairy product exports to India were limited to just $1.2 million in 2013-14.
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