INDIAN ECONOMY

FOR MAINS
Agri-Allied Sectors
Agri-Allied Sectors: Meaning and Need
Importance of Livestock Sector
Importance of Livestock Sector
• As per the Economic Survey-2021, the contribution
of Livestock in total agriculture and allied sector
Gross Value Added (at Constant Prices) has
increased from 24.32% (2014-15) to 28.63% (2018-
19).
• Livestock provides livelihood to two-third of rural
community.
• India is the highest livestock owner of the world.
• The total Livestock population is 535.78 million in
the country showing an increase of 4.6% over
Livestock Census-2012.
• In 20th Livestock Census, 35.94%-Cattle (2nd),
27.80%-Goat (2nd), 20.45%-Buffaloes (1st), 13.87%-
Sheep (3rd), 1.69%-Pigs.
• Uttar Pradesh (UP) has recorded highest livestock
population in 2019 followed by Rajasthan, MP,
West Bengal and Bihar.
Livestock Sector and Inclusive Growth
Equitable
distribution of
livestock
Fight against
Social status
malnutrition

Additional
Poverty
source of
Alleviation
Income

Economic Providing
Security Employment

Gender Equity
Challenges and Government Initiatives
Challenges Government Initiatives

• Degradation and encroachment of grazing land • Dairy Processing and Infrastructural

Development Fund
• Outbreak of Diseases: Food and Mouth Disease, Black Quarter
Infections, etc. • Animal Husbandry Infrastructure
Development Fund
• Yield and Productivity Issues: Largest producer of milk but yield
is only bout 50% of the global cattle average. • National Livestock Mission
• Emission of GHGs: Contributes 58% of agricultural emissions. • National Animal Disease Control
Programme (NADCP)
• Lack of Technology advancements: Limited artificial
inseminations, deficiency in quality germplasm, lack of technical • National Artificial insemination
manpower. Programme
• Funding Issues: Only 12% of the total expenditure on agriculture • National Programme for Dairy
and allied resulting in inadequate veterinary care, Development
• Poor extension services: Only 5.1% of farm households • Rashtriya Gokul Mission
• Poor Insurance coverage • E-Pashu Haat Portal
• Underdeveloped and unorganised markets for livestock • Pashu-Aadhar
• High presence of informal sector • Gobar-Dhan
• Lack of testing facilities for quality checking and standardisation • E-Gopala App
of animal products • Dairy Entrepreneurship Development
• Export Constraints: Ad-hoc export policy Scheme
Recommendations/Reform Measures
Dairy Sector
• The idea is to increase milk production which is dismal in comparison to US, UK, and Israel.
• Though India has attained the numero uno position in milk production but that is only because the
country is home of world’s largest livestock population.
• Through the programme, the aim is to increase high yield per cow which is very low in comparison to
the European countries like US.
• The average daily milk yield for crossbred cattle in India is at 7.1 kg per day while it is at 25.6 in UK,
US (32.8) and Israel (38.6).
• The reason behind the low yield in India is because of intrinsic and extrinsic factors both.
• The intrinsic factor is low genetic potential while extrinsic is related with number of reasons like
poor nutrition and feed management, inferior farm management practices and inefficient
implementation of breed improvement programs.
• At present, India is largely using Jersey, a native of Netherlands and British origin Holstein for cross-
breeding purposes.
 Analysis of Dairy Sector
Budget 2022-23 Initiatives • Largest bovine population in the world
• Infrastructure Development under • Milk production increased from 146.3
Vibrant Villages Programme million tonnes(mt) in 2014-15 to 187.7 mt
• Reducing Alternate Minimum Tax in 2018-19
• Enhanced allocation for central sector • NSSO Survey (70th Round) – 23% of
schemes Government Potential of agricultural households = Livestock as
• KCC for Animal Husbandry their principle source of income.
Initiatives Sector • Single-largest agri-commodity in India
• Inadequate market facilities and informal
• Contributes 5% to the national economy
sector. Eco. Survey 2018-19 – 36% by the
• Labour Intensive sector – 70 million
organised sector.
people
• Unhygienic conditions of the cattle
Challenges
• Incidence of Diseases Operation
• Low productivity ---> 7.1 kg per day as in the Dairy
Flood
compared to 25.6 in UK, US (32.8) and Sector
Israel (38.6).
• Climate Change ----> Increase in
temperature ---> Affecting productivity
• Poor coverage of livestock insurance.
• Infrastructural deficiencies such as cold
storage facilities.
and many more…..
Operation Flood (White Revolution)
Phase-1: 1970-1980 Phase-3: 1985-1996

Phase-2: 1981-1985
Achievements of the White Revolution
Criticism of the Dairy Sector
Second White Revolution
 Analysis of Poultry Sector
• Cross-breeding of indigenous species • Second-largest poultry market in the
with exotic stocks world.
• Meat Processing Plants • Higher production rate than agricultural
• Establishment of disease free zones. production.
• Increasing the number of farmers rearing • Meat products constitutes one of the
buffalo under the contractual farming. Way Potential largest items of export.

Forward of Sector
• Environmental Issues:
• High GHG emissions
• Huge Energy consumption Concerns
Pink
• Contamination and Pollution about Pink
• Health Risks of various diseases Revolution
• Marketing and Infrastructural Support Revolution
• Unorganised market
• Poor infrastructure such as proper
abattoirs and cold storage facilities.
• Lack of Government Support