Contribution of Livestock in Indian Economy

India has world’s largest dairy herd (cows and buffaloes) and world’s largest milk producer.  The agricultural system of our country is predominantly a mixed crop-livestock farming system in which crop production is combined with the rearing of livestock, which supplements the farm incomes by providing employment, draught animals, and manure.

In recent decades, Livestock’s contribution to agriculture output is growing and its growth rate has also remained higher. The below graphics shows that share of livestock & fisheries has been consistently growing in total agricultural GDP.

Also, it is interesting to note that today economic / monetary contribution of the livestock is more than the food grain crops! It is interesting because traditionally, the crops were driver of farm growth and food grain crops were major part of it; and this was the reason that the government policy and programmes were focussed on crops. But slowly and gradually, the increased contribution of livestock is hinting towards a structural shift in the agricultural sector in the country. The policy makers are now recognising livestock as the engine of agriculture growth.  Both livestock and fisheries components have been growing faster than the crops component for a decade. Livestock now controls a quarter of the agriculture gross domestic product (GDP).

There are several reasons of this phenomenon, enumerated as below:

• Livestock are the best insurance against the vagaries of nature like drought, famine and other natural calamities. They supplement family income and generate gainful self-employment, particularly for landless labourers, small and marginal farmers and women.
• Livestock Sector not only provides essential proteins and nutritious human diet through milk, eggs, meat etc., but also plays an important role in utilization of non-edible agricultural by-products. Livestock also provides raw material by-products such as hides, skin, blood, bone, fat etc.
• Animals are natural capital, which can be easily reproduced to act as a living bank with offspring as interest, and an insurance against income shocks of crop failure and natural calamities.