India's protein system is entering a decisive decade. Rising wealth and urbanisation are accelerating demand for eggs, dairy, fish and meat. For food companies, this signals growth. For boards and investors, it also signals rising exposure to risks embedded deep within protein supply chains.
There's no question that overcoming India's protein gap is essential. Child development and maternal health and productivity depend on addressing dietary deficiencies. But pursuing this goal through rapid expansion of animal protein production exposes India, and companies driving that growth, to intensifying climate impacts, land-use pressures, antimicrobial resistance (AMR) and animal health risks.
If India's current food systems fail to embrace responsible and sustainable protein sourcing, those threats will continue to spiral. Major food buyers sit at a nexus between those who produce food and those who consume it. Hindustan Unilever, Tata Consumer Products, Nestle India and Westlife Foodworld are key shapers of protein demand and sourcing. But much of their supply still comes from highly fragmented value chains.
Millions of smallholder dairy farmers, poultry growers, fishers and informal suppliers form the backbone of India's animal-protein economy. This fragmentation makes traceability, welfare improvements and responsible antibiotic use more complex. It also makes corporate sourcing practices more consequential.
Recent analysis of Asia's largest food companies in the 'Asia Protein Buyers 100' benchmark report - which includes 13 of India's major food buyers - revealed that while Indian companies have improved in adopting supplier codes and traceability policies, roughly matching the Asian average in disclosure, significant gaps remain in areas like climate planning, antibiotic stewardship and animal welfare. Progress is visible at the level of policy statements, but far less evident in measurable execution.
More than half of those 13 companies have yet to begin disclosing against climate-related indicators, and most lack policies, standards or targets related to animal welfare. Only a small minority reference higher-welfare sourcing, such as tether-free or cage-free systems, and few disclose measurable progress.
These gaps are not abstract sustainability concerns. They translate into operational, regulatory and capital risks that could shape competitiveness of India's food sector.
Public health India already faces one of the world's highest AMR burdens, triggered by high-density livestock and poultry systems, many of which rely on routine antibiotic use, frequently for animals that aren't even sick.
Climate vulnerability Protein supply chains are exposed to climate risk and India is one of the world's most climate-vulnerable countries. Expanding protein production without integrating climate mitigation and resilience strategies exposes the entire food system to greater risk. This, in turn, jeopardises farmer livelihoods. India's protein economy rests on smallholder dairy farmers, contract poultry growers and aquaculture producers.
As sustainability standards tighten globally, compliance costs will increasingly affect suppliers. Without a 'just transition' approach, the burden of adjustment may fall disproportionately on small farmers navigating price volatility and climate shocks.
This is where the concept of a 'protein transition' becomes relevant. It does not mean replacing animal protein entirely with plant-based alternatives. It means balancing responsible animal production with greater diversification, improved welfare standards, reduced antibiotic misuse, better traceability and climate-aligned sourcing.
For India, this transition must be uniquely calibrated. Unlike high-income countries debating meat reduction, India is still addressing protein adequacy. The priority is not less protein, but smarter protein that strengthens rather than strains the system.
For India's large food buyers, this is not a peripheral ESG issue. It is a strategic business question. It means setting clearer standards and investing in supplier support rather than shifting risks onto producers.
As food systems scale, questions of industry governance become unavoidable. Issues such as antibiotic misuse, animal health, hygiene and supply chain traceability are not add-ons but critical determinants of food safety, public trust, productivity, and the long-term resilience of a sector on which hundreds of millions in India depend daily.
India's protein boom is underway. Whether it becomes a story of sustainable growth or accumulated risk will depend on the decisions made in corporate boardrooms today.
There's no question that overcoming India's protein gap is essential. Child development and maternal health and productivity depend on addressing dietary deficiencies. But pursuing this goal through rapid expansion of animal protein production exposes India, and companies driving that growth, to intensifying climate impacts, land-use pressures, antimicrobial resistance (AMR) and animal health risks.
If India's current food systems fail to embrace responsible and sustainable protein sourcing, those threats will continue to spiral. Major food buyers sit at a nexus between those who produce food and those who consume it. Hindustan Unilever, Tata Consumer Products, Nestle India and Westlife Foodworld are key shapers of protein demand and sourcing. But much of their supply still comes from highly fragmented value chains.
Millions of smallholder dairy farmers, poultry growers, fishers and informal suppliers form the backbone of India's animal-protein economy. This fragmentation makes traceability, welfare improvements and responsible antibiotic use more complex. It also makes corporate sourcing practices more consequential.
Recent analysis of Asia's largest food companies in the 'Asia Protein Buyers 100' benchmark report - which includes 13 of India's major food buyers - revealed that while Indian companies have improved in adopting supplier codes and traceability policies, roughly matching the Asian average in disclosure, significant gaps remain in areas like climate planning, antibiotic stewardship and animal welfare. Progress is visible at the level of policy statements, but far less evident in measurable execution.
More than half of those 13 companies have yet to begin disclosing against climate-related indicators, and most lack policies, standards or targets related to animal welfare. Only a small minority reference higher-welfare sourcing, such as tether-free or cage-free systems, and few disclose measurable progress.
These gaps are not abstract sustainability concerns. They translate into operational, regulatory and capital risks that could shape competitiveness of India's food sector.
Public health India already faces one of the world's highest AMR burdens, triggered by high-density livestock and poultry systems, many of which rely on routine antibiotic use, frequently for animals that aren't even sick.
Climate vulnerability Protein supply chains are exposed to climate risk and India is one of the world's most climate-vulnerable countries. Expanding protein production without integrating climate mitigation and resilience strategies exposes the entire food system to greater risk. This, in turn, jeopardises farmer livelihoods. India's protein economy rests on smallholder dairy farmers, contract poultry growers and aquaculture producers.
As sustainability standards tighten globally, compliance costs will increasingly affect suppliers. Without a 'just transition' approach, the burden of adjustment may fall disproportionately on small farmers navigating price volatility and climate shocks.
This is where the concept of a 'protein transition' becomes relevant. It does not mean replacing animal protein entirely with plant-based alternatives. It means balancing responsible animal production with greater diversification, improved welfare standards, reduced antibiotic misuse, better traceability and climate-aligned sourcing.
For India, this transition must be uniquely calibrated. Unlike high-income countries debating meat reduction, India is still addressing protein adequacy. The priority is not less protein, but smarter protein that strengthens rather than strains the system.
For India's large food buyers, this is not a peripheral ESG issue. It is a strategic business question. It means setting clearer standards and investing in supplier support rather than shifting risks onto producers.
As food systems scale, questions of industry governance become unavoidable. Issues such as antibiotic misuse, animal health, hygiene and supply chain traceability are not add-ons but critical determinants of food safety, public trust, productivity, and the long-term resilience of a sector on which hundreds of millions in India depend daily.
India's protein boom is underway. Whether it becomes a story of sustainable growth or accumulated risk will depend on the decisions made in corporate boardrooms today.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
Rituj Sahu
He is director, Protein Transition (India), Asia Research & Engagement