India is a leading player globally, especially in milk production, contributing nearly 25 per cent of global milk output, India ranks 2nd in egg production and 5th in meat production. India has the largest population of livestock globally. India’s export of livestock products in 2023-24 was ₹3,73,665.51 crore ($4,543.52 million). Buffalo meat dominated the exports with a contribution of over 82 per cent in total animal products export from India in 2023-23.
Livestock are multifunctional. Through their food and non-food functions, they make significant contributions towards improving the sustainability of agriculture, farm incomes, nutrition and human health, and reducing rural poverty. They produce nutrient-rich foods such as milk, meat and eggs, and provide draught services for agricultural operations and rural transportation and dung for use as manure and bio-fuel for domestic purposes. Besides, they assume the function of a financial institution — a living bank with offspring as an interest and insurance during economic crisis.
Livestock is a vital sector of India’s economy and it grew at an impressive CAGR of 8 per cent (at constant prices). The contribution of livestock to the total GVA (at constant prices) in agriculture and allied sectors is 30.23 per cent in 2022-23. GVA from milk accounts for 82 per cent of India’s livestock GVA. The livestock sector contributed 5.50 per cent of the total GVA in 2020-23. Livestock rearing is a major source of livelihood for over 70 per cent rural households in India, with a significant proportion being small and marginal farmers and landless labourers. About 20.5 million people are involved in livestock rearing in India.
More egalitarian
The distribution of livestock resources is more egalitarian than that of land, and thus the growth in livestock sector is more pro-poor. Ownership of livestock, unlike land, is not bounded by any property rights, and in an agrarian society where the land rights are biased towards males, women can acquire livestock with a small capital and multiply them effortlessly through reproduction to upscale the herd. When women have control over livestock resources and incomes, they tend to allocate a large share of household budget to children’s nutrition, health and education. In India, primary livestock production engages about 8 per cent of the agricultural workforce, and more than 70 per cent of it are women. For 2025-26, the Department of Animal Husbandry and Dairying has been allocated ₹4,840.40 crore, which is 26.08 per cent higher than the revised estimated amount of ₹3,839.25 crore in 2024-25. The scheme that received major budgetary support of ₹1,980 crore is Livestock Health and Disease Control Programme followed by ₹1,000 crore for Dairy Development, ₹800 crore for National Livestock Mission and Infrastructure Development Fund (₹460 crore).
KCC facility is available to animal husbandry and dairy farmers to meet working capital requirements.
The macroeconomic indicators point towards existence of huge regional differences in livestock development and its supporting infrastructures and institutions. In States like Punjab, Haryana, Gujarat, Maharashtra, Tamil Nadu and Karnataka, the livestock production is relatively more productive and commercialised, while in most other States, especially in eastern and north-eastern regions, they are primarily subsistence-oriented.
There exists a considerable scope to exploit the untapped potential of livestock through strategies such as: (i) optimising livestock population; (ii) enhancing and prioritising public spending on livestock; (iii) improving supply of feeds and fodders; (iv) improving delivery of livestock services; (v) investing more in research and extension; (vi) improving coverage of livestock insurance; and (vii) strengthening markets and value chains.
The writer is DGM/Faculty Member, NABARD/National Bank Staff College. Views are personal
