1. Introduction

Animal Husbandry and Dairying activities, along with agriculture, continue to be an integral part of human life since the beginning of human civilization. These activities have contributed not only to nutritional security and animal power but also to maintaining ecological balance. Owing to the conducive climate and topography, the Animal Husbandry and Dairying sectors have played a prominent socioeconomic role in India. Traditional and cultural beliefs have also contributed to the continuance of these activities. They also play a significant role in generating gainful employment in rural areas, particularly among the landless, small and marginal farmers and women, besides providing cost-effective and nutritious food to millions of people.

Livestock production and agriculture are intrinsically linked, each being dependent on the other, and both are crucial for overall food security. The livestock sector is an important sub-sector of the agriculture in Indian economy. It forms an important livelihood activity for most of the farmers, supporting agriculture in the form of critical inputs, contributing to the health and nutrition of the household, supplementing incomes, offering employment opportunities, and finally being a dependable ‘bank on hooves’ in times of need. It acts as a supplementary and complementary enterprise. India has vast resources of livestock and poultry, which play a vital role in improving the socioeconomic conditions of rural masses. There are about 303.76 million bovines (cattle, buffalo, Mithun and yak), 74.26 million sheep, 148.88 million goats, 9.06 million pigs and about 851.81 million poultry as per the 20th Livestock Census in the country.

2. Overview of Finances

In 2025-26, the Department of Animal Husbandry and Dairying, GOI has been allocated Rs.4840.40 crore which is 0.1% of the total budgeted expenditure of Rs.5065345.04 crore of the central government. In 2025-26, the department’s expenditure is estimated to be Rs.4840.40 crore, which is 26.08% higher as compared to the revised estimated amount of Rs.3839.25 crore in 2024-25 (Table 1).

Table 1. Department’s Budget for 2025-26 (Rs. Crore)

S.No	Department	2023-24 Actuals	2024-25 Revised	2025-26 Budgeted	Per cent change in 2025-26 Budget Estimate over 2024-25 RE
1	Department of Animal Husbandry and Dairying	3199.10	3839.25	4840.40	26.08%

3. Schemes / Projects with Major Budgetary allocation

The scheme that received the major budgetary support of Rs.1980 Cr. is the Livestock Health and Disease Control Programme followed by Rs. 1000 Cr. for Dairy Development and Rs. 800 Cr. for National Livestock Mission. The other major schemes/projects that received major allocation are the Infrastructure Development Fund (Rs.460 Cr.), Livestock Census and Integrated Sample Survey (Rs.250 Cr.) followed by that is Animal Health Institute (Rs.100 Cr.). The details of the share of various schemes and projects, etc. are given in the chart No.1.

3.1 Livestock Health and Disease Control Programme

Livestock Health and Disease Control and National Animal Disease Control Programme for Foot and Mouth Disease (FMD) and Brucellosis have been merged into a single scheme, which is renamed as Livestock Health and Disease Control Programme. The department utilizes the funds for supplementing the activities of the State Governments for sustainable livestock health by providing central assistance under various immunizations, Skill Development, and the creation of Veterinary Infrastructure.

3.2 Dairy Development

The department utilizes this fund for release to different Milk Unions/State Milk Federations for approved projects and Dairying through Cooperatives component - B of the Dairy Development Scheme that has been initiated in cooperation with Japan International Co-operative Agency (JICA), which will provide ODA loan assistance.

3.3 National Livestock Mission

The budget is for the scheme with the objective of sustainable development of the livestock sector especially cattle, ruminants and other small livestock. National Livestock Mission targets entrepreneurship development of Poultry, sheep, goat, feed and fodder development as well as breed improvement. The Mission also focuses on horses, donkeys, mules and camels for holistic development of the livestock sector. Risk mitigation assistance is also made available for livestock insurance under the scheme.

3.4 Infrastructure Development Fund

Under the Atma Nirbhar Bharat Abhiyan stimulus package, the Animal Husbandry Infrastructure Development Fund (AHIDF) was merged with the Dairy Processing & Infrastructure Development Fund (DIDF) for incentivizing investments by inp-idual entrepreneurs, private companies, MSME, Farmers Producers Organizations (FPOs), Section 8 companies and Dairy Cooperatives to establish:

(i) Dairy processing and value addition infrastructure,

(ii) Meat processing and value addition infrastructure

(iii) Animal Feed Plant

(iv) Breed improvement technology etc.

The budget provision is also for supporting the working capital requirement of the State Cooperative Dairy Federation (erstwhile Support to State Co-operative Dairy Federations).

3.5 Livestock Census (LC) and Integrated Sample Survey (ISS)

The provision under this head is for the 21st Livestock Census Operation. The Livestock Census (LC) is a crucial exercise that has been conducted every five years since 1919, serving as the backbone for policy formulation and the implementation of various programmes in the Animal Husbandry sector. The Census involves a comprehensive door-to-door survey that captures detailed data on domesticated animals and birds across the nation. To date, 20 Livestock censuses have been conducted and the last census was held in the year 2019. At all India levels around 1 lakh field officials who are mostly veterinarians or para-veterinarians are involved in the enumeration process. This LC will leverage mobile technology for data collection and transmission. This advancement is expected to enhance the accuracy and efficiency of data collection across all villages and urban wards in the country. Data on 15 species of Livestock viz. Cattle, Buffalo, Mithun, Yak, Sheep, Goat, Pig, Camel, Horse, Ponies, Mule, Donkey, Dog, Rabbit and Elephant are covered in this census. Other than Livestock, the headcount of Poultry Birds viz. Fowl, Duck, Turkey, Geese, Quail, Gini Fowl, Ostrich and Emu will also be taken from each Household/ Household Enterprises/ Non-households/Institution. This LC will capture data on 219 Indigenous breeds of 16 species recognized by the ICAR-National Bureau of Animal Genetic Resources (NBAGR). Notably, it will be the first LC in the country in which data on livestock holding by pastoralists will be available independently. This LC will also make available information on the “Gender of the person majorly involved in livestock rearing”. Integrated Sample Survey, in which production of major livestock products namely, milk, eggs meat wool etc. are estimated based on sample surveys conducted by all States and Union Territories. The detailed breakup of the AH & Dairying Budget (2025-26) is given in Table 2.

Table 2. Budget 2025-26 Department of AH & Dairying
S.No.	Department of AH & Dairying	2024-25 Revised	2025-26 Budget
	Establishment Expenditure of the Centre
1	Secretariat
1.01	Establishment Expenditure	66.16	80.00
1.02	International Cooperation	0.00	0.00
	Total Secretariat	66.16	80.00
2	Animal Health Institute	60.26	100.00
3	Small Livestock Institute	38.00	50.00
4	Breed Improvement Institute	38.00	50.00
5	Centre of Excellence for AH	26.00	44.89
6	Actual Recoveries (Estt)	0.00	0.00
	Total - Establishment Expenditure of the centre	228.42	324.89
	Central Sector Schemes / Projects
7	LH & DCP	1980.00	1980.00
8	Infrastructure Development Fund	395.00	460.00
9	Dairy Development	450.00	1000.00
10	Rashtriya Gokul Mission	268.00	0.01
11	Actual Recoveries	0.00	0.00
	Total - Central Sector Schemes / Projects	3093.00	3440.01
	Other Central Sector Schemes / Projects
	Statutory and Regulatory Bodies
12	Animal Welfare Board	9.84	10.30
13	CCSEA	1.61	1.70
	Total - Statutory and Regulatory Bodies	11.45	12.00
	Autonomous Bodies
14	Veterinary Council of India	8.13	10.00
	Others
15	DMS
15.01	Expenditure of DMS	175.00	215.00
15.02	Less Receipts	-175.00	-215.00
	Net	0.00	0.00
16	International Cooperation	3.25	3.50
	Total - Others	3.25	3.50
	Total - Other Central Sector Expenditure	22.83	25.50
	Transfers to States / UTs
	Centrally Sponsored Schemes
17	Developmental Programmes
17.01	Livestock Census and ISS	45.00	250.00
17.02	National Livestock Mission	450.00	800.00
17.03	Dairying through Cooperatives	0.00	0.00
	Total - Developmental Programmes	495.00	1050.00
18	Actual Recoveries	0.00	0.00
	Total	495.00	1050.00
	Grand Total	3839.25	4840.40

(Source: Notes on Demands for Grants, 2025-2026; Demand No. 44)

4 Per cent change in 2025-26 Budget Estimate over 2024-25

The rollout of the 21st Livestock Census was done from October 2024 - February 2025, in collaboration with State/UT Animal Husbandry and Dairying. This once-in-a-year activity has shown the highest change of 456%. The other activities with major per cent change (Chart 2 & Table 2) are Dairy Development, National Livestock Mission, Centre of Excellence in Animal Husbandry and Animal Husbandry Institute.

Table 3. Per Cent Change in 2025-26 Budget estimate over 2024-25 RE

S.No.	Department of AH & Dairying	2024-25 Revised	2025-26 Budget	Per cent change
1	Livestock Census & Integrated Sample Survey	45.00	250.00	456
2	Dairy Development	450.00	1000.00	122
3	National Livestock Mission	450.00	800.00	78
4	Centre of Excellence for Animal Husbandry	26.00	44.89	73
5	Animal Husbandry Institute	60.26	100.00	66
6	Small Livestock Institute	38.00	50.00	32
7	Breed Improvement Institute	38.00	50.00	32
8	Veterinary Council of India	8.13	10.00	23
9	Establishment Expenditure of Centre	66.16	80.00	21
10	Animal Husbandry Infrastructure Development Fund	395.00	460.00	16

5. Other announcements about Animal Husbandry in the Budget

5.1 Enhanced Credit through KCC

KCC facility is available to the AH & Dairy farmers to meet the short-term credit requirements of rearing animals and birds. The working capital components in Animal Husbandry, as per the scale of finance the recurring cost towards feeding, veterinary aid, insurance of milch animals, labour, water and electricity supply are covered in AH-KCC.

The government of India has extended the benefit of KCC to Animal Husbandry and Dairy Farmers during 2019. As of 15.11.2024, more than 41.66 lakh fresh KCCs were sanctioned for AHD Farmers. The loan limit under the Modified Interest Subvention Scheme has been enhanced from Rs.3 lakh to Rs.5 lakh for loans taken through the KCC in this budget.

6. Role of AH/Livestock and Dairying sectors in the economy

The Livestock Sector is an important subsector of agriculture in the Indian economy. It grew at a Compound Annual Growth Rate (CAGR) of 12.99% from 2014-15 to 2022-23. The contribution of livestock in total agriculture and allied sector Gross Value Added (GVA) has increased from 24.38% in 2014-15 to 30.23% in 2022-23 (at Current Prices). The livestock sector contributed 5.50% of total GVA in 2022-23(at Current Prices).

India is ranked first in milk production contributing 24.76% of global milk production. Milk production is growing at a Compound Annual Growth Rate (CAGR) of 5.62% over the past 10 years from 146.31 million MT during 2014-15 to 239.30 million MT during 2023-24. World milk production has grown by 1.50% during 2023 (Est.) in comparison to the year 2022 (Food Outlook November 2024). The per capita availability of milk is 471 grams per day in India during 2023-24 as against the world average of 329 grams per day in 2023 (est.) (Food Outlook November 2024).

According to Food and Agriculture Organization Corporate Statistical Database (FAOSTAT) production data (2022), India ranks 2nd in Egg Production and 5th in meat production in the world. Egg production in the country has increased from 78.48 billion in 2014-15 to 142.77 billion Nos. in 2023-24. Egg production in the country is growing at the Compound Annual Growth Rate (CAGR) of 6.87% over the past 10 years. The per capita availability of eggs is at 103 eggs per annum in 2023-24 as against 62 eggs in 2014-15. Meat production in the country has increased from 6.69 million tonnes in 2014-15 to 10.25 million tonnes in 2023-24. Meat production in the country is growing at the Compound Annual Growth Rate (CAGR) of 4.85% over the past 10 years.

7. Conclusion

A clarion call for Viksit Bharat@2047 by the Prime Minister represents his long-term aspiration to transform India into a developed nation by 2047. There is no standard definition of a developed economy. The World Bank categorizes economies with annual per capita Gross National Income (GNI) exceeding $13,846 as high-income, those ranging between $4,466 and $13,845 as upper-middle-income, and those between $1,136 and $4,465 as lower-middle-income economies. Thus, India with a per capita GNI of $2,390 in 2022, is a lower-middle-income economy at present by the World Bank’s classification.

To become a developed nation by 2047, India’s per capita GNI must rise by about 6 times over its current levels. It is a tall order. We believe that not only per capita GNI must increase substantially, but the incomes of the masses must rise sustainably for development to be inclusive. And this depends inevitably on farm incomes improving, given that 45.8% of the working population is engaged on farms, with an average holding size of just 1.08 hectares (ha) (2015-16), and agriculture contributes only about 18% to overall GDP (2022-23). Their meagre incomes and struggle for survival often erupt in agitations demanding either higher prices for their products or loan waivers, etc. Thus, resolving farmer issues and creating conditions in which their incomes can improve substantially and sustainably is essential for making the development process inclusive and sustainable, and accomplishing the goal of Viksit Bharat by 2047. We are aware of the symbiotic relationship that animal husbandry has with agriculture. In the Policy brief, “ New Deal for Agriculture for Viksit Bharat@2047” authored by Dr Ashok Gulati, et.al., 2024, Animal Husbandry / Livestock production has been identified as an activity for personi-fication away from crops towards High-Value Commodities. The potential for increasing farmers' incomes lies primarily in animal husbandry. This sector is increasingly contributing to the income of the farmers. This budget for AH & Dairying is yet another step in the right direction for unleashing the socio-economic potential of AH & Dairying for realizing Viksit Bharat 2047.

References

Union Budget Documents 2025-2026
Annual Report 2023-24, Department of Animal Husbandry and Dairying, Government of India
Press Information Bureau - Media Brief on the important decisions and achievements of the Ministry for Fisheries, Animal Husbandry and Dairying dated 17 Sep 2024
Policy Brief - New Deal for Agriculture for Viksit Bharat@2047; Ashok Gulati, et.al., Mar. 2024

Disclaimer: The Views expressed in the paper/article are personal and not representative of NABARD