Boosting India’s livestock sector: How health, infrastructure, credit can drive rural prosperity
India’s livestock sector has shifted from a supporting role in agriculture to a crucial economic engine, driving rural livelihoods, food security, and trade. With rising national income contributions and expanding export opportunities, the sector needs focused, strategic policy support. Ongoing investment in animal health, productivity, infrastructure, credit, and skills will increase farmer incomes and boost India’s global edge in livestock products.
Strengthening animal health and productivity
Livestock productivity and health remain foundational to the sector’s growth. India’s Basic Animal Husbandry Statistics 2025 reports expansion in milk, egg, meat, and wool production, with milk production alone rising to nearly 248 million tonnes in 2024‑25, up from 239 million tonnes in 2023‑24. This reinforces India’s position as the world’s largest milk producer.
Acknowledging the importance of effective disease management, the Union Cabinet in March 2025 cleared an updated Livestock Health and Disease Control Programme (LHDCP), allocating ₹3,880 crore for implementation across 2024–25 and 2025–26. This scheme integrates components such as the National Animal Disease Control Programme (NADCP), Pashu Aushadhi (for affordable veterinary medicines), and expanded vaccination drives for diseases like FMD (Foot and Mouth Disease) and Brucellosis.
Complementing programme funding, the government has launched the 21st Livestock Census — a comprehensive door‑to‑door enumeration of livestock and poultry that will provide updated data for policy planning, particularly in disease surveillance, breed improvement, and rural livelihoods. The census, operating through 2024‑25, is expected to yield granular insights that can shape evidence‑based interventions.
Yet challenges persist. Feed inputs account for the single largest cost component in animal production, typically absorbing 60–80% of total production costs. From an operational standpoint, feed availability and pricing continue to be among the most decisive factors shaping livestock productivity, making targeted interventions critical to sustaining growth momentum.
Investing in infrastructure and value addition
Infrastructure remains a structural constraint across India’s livestock value chain. The Animal Husbandry Infrastructure Development Fund (AHIDF), extended through 2025–26 with an outlay of ₹29,610 crore, is positioned to unlock private investment in feed manufacturing, dairy and meat processing, breed improvement farms, and integrated logistics. Its effectiveness will be central to addressing long-standing capacity and efficiency gaps.
Robust infrastructure is vital for export competitiveness. In FY25, livestock and animal product exports reached $5,114.19 million—a 12.6% increase. Stakeholders are now targeting 20% export growth in FY26 via improved quality, sanitary standards, and trade facilitation.
India’s seafood sector, especially shrimp, underscores the importance of processing and cold‑chain investments. Despite India’s rise as the second‑largest fish producer globally, export gains are tempered by logistic inefficiencies and tariff pressures in key markets. Strengthened cold storage, auction centres, and port infrastructure could improve producers’ margins and stabilise export volumes.
Enhancing credit access and financial inclusion
Access to affordable credit is indispensable for livestock farmers, particularly smallholders who constitute the majority of livestock owners. Agricultural credit targets have been incrementally raised, encompassing allied sectors such as dairying, poultry, and fisheries, laying the groundwork for enhanced rural demand and activity. Government data shows that increased Kisan Credit Card (KCC) limits and eligibility expansions now include dairy and livestock enterprises, facilitating investment in animal housing, feed procurement, and productivity enhancements.
In addition to traditional credit, specialised support mechanisms, such as the Credit Guarantee Scheme for livestock MSMEs, have been introduced under Atma Nirbhar Bharat, providing guarantee coverage to spur credit flows into the sector.
Skill development and enterprise promotion
Skill development and entrepreneurship initiatives are gaining traction as avenues to transform livestock rearing from a subsistence activity into viable enterprises. National Livestock Mission programmes support research and development, feed and fodder innovations, and enterprise incentives, particularly in rural and tribal areas.
Vocational training and youth engagement bridge skill gaps in dairy entrepreneurship, poultry management, and value‑added processing. These efforts support MSME strategies by enabling precision livestock farming, effective farm management, and profit maximisation.
Conclusion
India’s livestock sector has made measurable strides, supported by targeted budget allocations, infrastructure funding, and policy frameworks focused on health, productivity, and market integration. Yet, to sustain momentum, policy must translate into on‑ground improvements in disease control efficacy, feed accessibility, credit outreach, and value chain infrastructure. The balance between supporting smallholder livelihoods and scaling high‑value exports will define the sector’s trajectory in the coming decade. With coordinated public‑private action, India can not only feed its vast domestic demand but also emerge as a global leader in livestock productivity and animal‑derived products.
The author is Chairman, CLFMA of India
Published on January 31, 2026
