Animal rearing covers dairy, cattle, buffalo, goat, sheep, piggery and poultry activities and is a significant component of the Indian rural economy. It is not only a ready cash provider but also a source of employment and a financial lifeline in times of distress for small and marginal farmers.
The livestock sector’s share in the Gross Value Added (GVA) of the agriculture and allied sector was 24.38% in FY2015 and 30.23% in FY2023 as per the Economic Survey 2024-25. The value of total output was ₹17.25 lakh crore in FY2023 with more than ₹11.16 lakh crore being contributed by milk.
Livestock Output in India
As per the Basic Animal Husbandry Statistics 2025, India’s livestock output in different categories in 2024-25 includes:
- Milk – 247.87 million tonnes
- Eggs – 149.11 billion
- Meat – 10.50 million tonnes
- Wool – 34.57 million kg
Economic Profile of Animal Rearing in India
For small and marginal farmers, animal rearing has come to be viewed as an important option to supplement their farm income as the activity is not very intensive in terms of land use. Besides, the activity can be taken up even on a small scale by the landless.
As per the 20th Livestock Census 2019, India has a livestock population of 536.76 million with about 95.8% of it found in rural areas. There is a tremendous genetic diversity among cattle, buffaloes, sheep, and goats that provide for dairy, meat, wool and hide.
Animal husbandry encompasses a range of commercial activities like dairy, poultry, goatery, sheep and piggery. Commercial dairying, commercial poultry, goat breeding, sheep fattening and piggery have developed as significant livelihood options for the rural poor linked to processing, organized retailing and exports.
Recent Growth Trends in the Livestock Economy
Production trends in respect of different livestock produces are given below:
Milk
Milk – 247.87 million tonnes in 2024-25, which reflects an increase of 3.58% over the 239.30 million tonnes in 2023-24. The per capita availability of milk has increased from 471 grams per day to 485 grams per day.
Eggs
Eggs – 149.11 billion in 2024-25, representing an increase of 4.44% over the previous year. The per capita availability of eggs has risen to 106 per year.
Meat
Meat – 10.50 million tonnes in 2024-25 against 10.25 million tonnes in 2023-24, indicating an increase of 2.46%. Poultry contributes most with about 49% of the total meat.
Wool
Wool – 34.57 million kg in 2024-25, which is 2.63% higher than the previous year. Rajasthan and Jammu & Kashmir contribute over 70% of the total wool production.
Why Animal Rearing Matters to the Rural Economy
1. Regular Household Cash Flow
Unlike crop production, animal husbandry provides regular income as against the interval of four to six months in crop production. Animal products like milk, eggs and meat can be sold to supplement the household income regularly.
2. Livelihood Support to Small and Marginal Farmers
Animal rearing is relatively less land-intensive and offers livelihood opportunities to small and marginal farmers in addition to cropping. Landless laborers can also rear small ruminants like goats and backyard poultry to add to their income.
3. Provides Employment
Animal husbandry offers employment opportunities directly and indirectly. Several activities like compounders, vets, transporters, abattoirs, processing and packaging employ people.
4. Reduction of Poverty and Liquidity Support
Farm animals can be sold to meet personal or family needs, especially in times of distress.
5. Empowerment of Women
The work related to animal rearing is mostly done by women. Providing credit support, organizational structure and technology can empower women economically.
6. Better Nutritional Security
Animal products like milk, eggs and meat are a rich source of animal protein, minerals, fiber and healthy fats. These are an important component of a balanced diet.
7. Crop-Animal Production Diversification
Crop production combined with livestock production provides an additional source of income and reduces the risks associated with total dependence on crop production.
8. Risk Mitigation
Animal husbandry provides an additional source of income and reduces the risks associated with total dependence on crop production.
9. Soil Fertility and Energy
Livestock manure is an important source of farmyard manure and biogas energy. It helps in maintaining soil fertility and reducing the use of chemical fertilizers.
10. Rural Allied Industries
Animal husbandry provides raw materials to several rural industries like dairy processing units, abattoirs, leather and wool spinning units, feed mills, veterinary drugs and cold chain.
The Dairy Economy
Dairy is the most significant livestock sector in India in terms of volume of production and value. The country is the largest producer of milk in the world having recorded a production of 247.87 million tonnes in 2024-25.
The dairy sector provides a regular and fairly remunerative price for milk to the farmers. Animal husbandry provides an assured and frequent source of cash to the rural poor. Collection of milk from rural farmers has been facilitated by the dairy cooperatives and private companies functioning at the state and national levels and the network of chilling centers that procure milk in bulk.
Despite the high quantum of milk production, the yield per animal is low in the country. The next round of growth in milk production will require focused attention on improving genetic improvement, feed and fodder quality, disease control and better managerial practices.
Poultry and Small Livestock as Emerging Rural Enterprises
Poultry is the most organized livestock sector. Egg production has recorded a production of 149.11 billion in 2024-25. Commercial poultry farms contribute to 84.49% of the total egg production with a well developed contract farming model.
Small ruminants are the poor man’s cattle. They can be reared on a small scale and have higher survival rates under harsh agro-climatic conditions. Small ruminants are the most viable option under the erratic rainfall conditions of the rain-shadow regions, drylands and the extreme climatic conditions of the Himalayas. Small livestock enterprises provide an alternate source of income to the landless and marginal farmers who do not have the resources to adopt commercial farming.
Challenges in Animal Husbandry
1. Low Productivity
Low genetic potential, improper feed and fodder management and inadequate housing and disease control measures contribute to low yields of milk, meat and wool.
2. Inadequate Fodder and Feed
Animal feed and fodder comprise the largest item of cost in animal husbandry. Availability of quality fodder is a major constraint. Competition of land between crops and fodder results in reduced feed availability for livestock.
3. Diseases
Outbreaks of various diseases such as Foot and Mouth Disease (FMD), brucellosis, lumpy skin disease (LSD) and avian influenza lead to huge economic losses and affect export potential.
4. Inadequate Veterinary Services
There is a scarcity of veterinary services such as diagnostic laboratories, mobile veterinary units and para-veterinary institutions in rural areas. Any disease outbreak in milch animals such as cows and buffaloes can cause huge losses to the farmer.
5. Credit and Insurance
Livestock farmers need credit support not only for buying stock but also for constructing sheds, purchasing milking machines and provision of medicines. Insurance coverage for livestock is also inadequate.
6. Price Fluctuations
Small livestock farmers do not have any control over the price of milk, poultry, eggs and wool. The prices are dictated by the commission agents and processors.
7. Processing and Value Addition
Livestock products are mostly marketed in their raw form without any processing and value addition. There is need to develop processing units for value-added products.
8. Cold Chain
Storage of raw milk and meat requires cold chain facilities. There is a severe shortage of infrastructure for cold storage of milk and meat, resulting in huge wastage.
9. Unorganized Animal Markets
Rural livestock markets are highly unorganized and animals are traded without scientific weighing, animal health check-up and proper handling.
10. Climate Change
Increasing ambient temperatures are causing heat stress in cattle leading to reduced milk yields and conception rates.
11. Environmental Impact
Entero-faecal contamination due to animal wastes, methane gas emissions and overgrazing are some of the major environmental impacts of animal husbandry.
Government Policy and Interventions
Government of India has a comprehensive livestock development strategy emphasizing genetic improvement, health and disease control, and commercial development of the sector.
Rashtriya Gokul Mission (RGM)
Focuses on genetic improvement of indigenous cattle and buffaloes.
National Livestock Mission (NLM)
Provides capital subsidy for development of poultry farms, sheep and goat farms, piggery and fodder seed production.
Livestock Health and Disease Control Programme (LHDCP)
Implements disease control operations through vaccination and mobile veterinary units.
National Programme for Dairy Development (NPDD)
Focuses on development of organized dairy farming through establishment of village level milk collection centers, automatic milk testing labs, bulk milk coolers and processing units.
Strategic Roadmap to Strengthen Livestock Economy
1. Yield Improvement
Strategies need to be evolved to improve the yield of milk, meat and wool without increasing the herd size.
2. Assurance of Fodder Supply
Measures need to be taken to ensure fodder supply to the livestock farmers through decentralized fodder seed production and silage making. Regenerating common grazing lands and promoting farmers to grow high yielding fodder crops are other options.
3. Strengthening Veterinary Services
There is need to provide veterinary services through well-equipped Mobile Veterinary Units (MVUs) and field diagnostic laboratories.
4. Credit and Insurance
Livestock farmers require working capital credit to meet recurring expenditures on feed, fodder and medicines. Insurance coverage needs to be adequate to mitigate the losses due to disease outbreaks and other hazards.
5. Farmer Producers Organizations (FPOs)
Farmers need to be organized into Farmer Producers Organizations and cooperatives for collective bargaining and reduce the cost of organized feed and fodder.
6. Processing and Value Addition
Livestock products such as milk, meat and wool need to be processed into value-added products for capturing higher prices.
7. Cold Chain
Cold chain infrastructure needs to be created to store milk and meat to reduce wastage.
8. Disease Surveillance
An effective animal health surveillance system needs to be evolved to monitor and control outbreaks of animal diseases.
9. Climate-Adjusted Livestock Production
Animal shelters need to be improved to provide proper ventilation and insulation. Farmers need to be encouraged to rear indigenous breeds acclimatized to local conditions. Drinking water facilities need to be created for the livestock and appropriate management practices evolved to mitigate the stress of heat and storms.
10. Women Farmers
Women farmers need to be provided credit, training and organization to build their capacities.
11. Youth Promotion
Youth need to be encouraged to start agri-enterprises in the livestock sector such as feed milling cum artificial insemination centers and cold chain and processing units.
12. Food Safety and Traceability
There is a need to promote traceability at farm and abattoir levels for meat, milk and egg products.
Conclusion
Animal rearing has become an important pillar of the rural economy contributing significantly to the Gross Value Added (GVA) of the agriculture sector. Livestock output worth ₹17.25 lakh crore was recorded in FY2023. Animal rearing provides regular income, employment and food. Efforts are needed to increase the share of animal husbandry in the agricultural GVA and total GDP of the country.
Frequently Asked Questions
Why is animal rearing vital to the Indian rural economy?
It provides regular non-crop income, employment and proteins for nutritional security. It is a ready cash provider, a source of employment, a supplement to farm income and a financial lifeline in times of distress.
What is the livestock sector’s contribution to the economy?
The livestock sector contributes 5.5% to the country’s GVA and around 30.23% to the total GVA of agriculture and allied sectors in FY2023.
What were India’s milk production figures for 2024-25?
India’s milk production has crossed 247.87 million tonnes in 2024-25, registering an increase of 3.58% over 239.30 million tonnes in 2023-24. The per capita availability of milk has also risen to 485 grams per day.
What was the volume of national egg production in 2024-25?
Egg production has risen to 149.11 billion in 2024-25, registering an increase of 4.44% over the previous year. Commercial poultry contributes to 84.49% of the total egg production in the country.
Transform your UPSC preparation with expert mentorship, structured guidance, and exam-focused study resources. Join our UPSC Mentorship Programme to strengthen your Economy, Agriculture, and Current Affairs preparation.
Ravi Raaz
Hassan Khan
Shadab Ali