Economics of Animal-Rearing: Drivers of Growth & Challenges

With digital livestock reforms and rising investments, animal rearing is becoming central to India’s rural economy and agricultural transformation.

Importance of Animal Rearing

Income Support: Animal rearing supports over 20 million livelihoods. E.g., Amul strengthened rural dairy incomes nationwide.
Nutrition Security: India produced 247.87 million tonnes of milk and 149.11 billion eggs, improving national nutritional intake.
Employment Generation: Livestock contributes nearly 30% agricultural GVA, generating substantial rural employment, especially for women workers.
Export Growth: Seafood exports reached ₹62,408 crore, making India the world’s second-largest fish producer globally.
Farm Sustainability: Livestock provides manure, biogas, and draught power, supporting sustainable integrated farming systems across rural India.

Current Facts and Data

Dairy Industry:
- Global Leadership: India retained its position as the world’s largest milk producer with 247.87 million tonnes output in 2024–25.
- Nutrition Security: Per capita milk availability increased to 485 gm/day, improving dietary access and nutrition.
Poultry Industry:
- Egg Expansion: Egg production reached 149.11 billion in 2024–25, making India the world’s 2^nd-largest producer.
- Meat Contribution: Poultry contributed nearly half of India’s total meat production.
Meat Industry
- Production Growth: India’s meat production increased to 10.50 million tonnes in 2024–25.
- Poultry Dominance: Poultry emerged as the leading contributor to the meat economy.
Wool Industry
- Dominance: Rajasthan contributed 47.85% of India’s total wool production in 2024–25.
- Sheep Economy: Rajasthan remains the backbone of India’s sheep-rearing sector.
Fisheries Industry
- Output Surge: Fish production nearly doubled from 95.79 lakh tonnes (2013–14) to around 198 lakh tonnes (2024–25).
- Export Strength: Seafood exports touched a record ₹62,408 crore, boosting the Blue Economy.

Drivers of Growth in the Animal Rearing

Demand Surge: Urbanisation and rising incomes have pushed India’s milk production to 247.9 million tonnes (2024–25), the highest globally.
Policy Push: Schemes like Rashtriya Gokul Mission and National Livestock Mission support genetic improvement and productivity enhancement in the livestock sector.
Cooperative Strength: Dairy cooperatives like Amul handle over 10 million farmer members, ensuring market access and price stability.
Tech Upgrade: Artificial insemination, AI-based vet services, and cold-chain expansion have boosted milk procurement efficiency and reduced post-harvest losses.

Government Initiatives for Animal-Rearing

Rashtriya Gokul Mission (RGM): Conserves indigenous cattle breeds and improves milk productivity through scientific breeding programs.
National Livestock Mission (NLM): Promotes entrepreneurship, fodder development, and breed improvement in poultry, sheep, goat, and piggery sectors.
Pradhan Mantri Matsya Sampada Yojana (PMMSY): Enhances fisheries infrastructure, aquaculture productivity, exports, and India’s Blue Economy growth.
National Artificial Insemination Programme (NAIP): Expands artificial insemination services for genetic improvement and higher livestock productivity.
Animal Husbandry Infrastructure Development Fund (AHIDF): Supports private investment in dairy processing, meat processing, and animal feed infrastructure.

Challenges in Animal-Rearing

Low Productivity: India’s average cattle productivity is nearly 2079 kg/year, far below the global average of 2699 kg/year.
Disease Outbreaks: Diseases like FMD and Lumpy Skin Disease caused major livestock losses across several Indian states recently.
Fodder Scarcity: India faces deficits of 11-32% in green fodder, 23% in dry fodder, and 40% in concentrate feed nationally.
Market Constraints: Livestock receives barely 4% of total agricultural credit despite contributing nearly 30% agricultural GVA.
Environmental Stress: Livestock account for nearly 14.5% of global greenhouse gas emissions, primarily methane from cattle and manure decomposition (IPCC).

Way Forward for Animal-Rearing

Genetic Revolution: Expanding artificial insemination and indigenous breed conservation under Rashtriya Gokul Mission can further enhance India’s 247.87 million tonnes of milk production.
Fodder Security: Promoting “Har Khet Fodder” through hydroponics and silage can bridge India’s 11-32% green fodder deficit sustainably.
Disease Shield: Universal vaccination under NADCP against FMD and Brucellosis can create a resilient “Healthy Livestock Economy”.
Market Modernisation: Strengthening dairy cooperatives like Amul and cold chains can expand exports and farmers’ profitability.
Green Livestock: Gobar-Dhan, biogas plants, and climate-smart farming can reduce livestock-linked 14.5% global greenhouse gas emissions.

“Empowered Livestock, Empowered Villages”; sustainable animal rearing can drive ‘Atmanirbhar Bharat’, nutrition security, rural resilience, and inclusive growth.

Reference: News On Air

UPSC Mains PYQs – Theme – Animal-Rearing

[UPSC 2015 12.5M] Livestock rearing has a big potential for providing non-farm employment and income in rural areas. Discuss suggesting suitable measures to promote this sector in India.

PMF IAS Pathfinder for Mains – Question 697

Q. Animal rearing has evolved from a supplementary occupation to a key pillar of rural livelihoods and nutritional security in India. Examine its economic significance and the challenges hindering sustainable growth. (250 Words) (15 Marks)

Approach

Introduction: Write a brief introduction about animal rearing.
Body: Write the economic significance of animal rearing, mentioning challenges hindering sustainable growth, and suggest a way forward.