The rise in milk adulteration and contamination, fraud incidents and improper handling necessitates effective traceability systems in the Indian dairy industry. Thus, this review investigates current trends, associated challenges, traceability and its fundamental applications to address food safety and quality issues. The paper covers the evolution of milk adulteration and contamination detection techniques from conventional to emerging. Such information and analytical technologies can improve transparency and safety in the dairy industry by implementing effective traceability systems. This review will explore the challenges and future opportunities associated with the current situation in the Indian dairy industry.