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T.Vijaya Nirmala 
TVM/ 12- 04
Livestock in Indian economy 
• Animal Husbandry & Fisheries sectors play an 
important role in the national economy & socio-economic 
development of rural households. 
• It contributes about 3.37% to the GDP and 24 % to 
the Agricultural GDP (2010-11) 
• supplementing family incomes and generating 
gainful employment in the rural sector, 
• providing cheap nutritional food to millions of people. 
• Over last two decades, livestock sector has grown 
at an annual rate of 5.6 %, which is higher than the 
growth of agricultural sector 3.3 %.
• Considered as one of the potential sector for 
export earnings 
• Makes significant contributions towards 
conservation of environment. 
• Livestock sector supplements income from crop 
production and other sources and absorbs 
income shocks due to crop failure. 
• Provide essential foods of animal origin like milk 
meat & egg 
• Animal byproducts such as hides, bones, blood, 
guts etc & organic manure valued at around 
Rs.21,019 crore.
• Bullocks : 
- Ploughing, transportation of goods & passengers and 
drawing water from Persian wheels. 
- DAP of bullocks (60 million) & buffalos (7 million) as well 
as equines (1 million) & camels (1million)make available 
50,000 million units of energy / yr worth Rs.10,000 crores 
• Biogas : is produced from cattle dung process called 
digestion. 
- One cubic meter biogas - one biogas lamp of luminosity 
equivalent to 60 watt electric lighting for 6-7 hrs. 
- one h.p engine working for 2 hrs 
roughly equivalent to 0.6 lt of diesel. 
- save 3.5 kg of wood / 1.6 kg of 
coal / 4.7 kw of electricity
• Sheep farming : 
- Provides employment opportunities to large section of 
population, particularly weaker sections of community in 
hilly, drought prone & desert areas. 
- Sheep droppings improve fertility of soil & penning of 
sheep in harvested fields brings in additional income to the 
flock owners. 
- Wool & mutton provide livelihood to large number of 
people. 
• Goat : 
- Contributes 16 % of total meat & 4 % to total milk 
produced in country. 
- By export of goat skins, casings & hair, valuable foreign 
exchange is earned. 
- Manure produced from droppings enriches the soil.
• Poultry farming : 
- Possible in varied agro climatic environment as the fowl 
possesses marked physiological adaptability. 
- It also remunerative following its small space requirement, 
low capital investment, with good returns from outlay & 
well distributed turnover throughout the year. 
- constitutes 14 % of total meat & almost 95 % of eggs are 
available from poultry farming. 
- chicken dropping used as fuel for heating of boilers & 
cleaner than coal fired generation (low in S, Cl & heavy 
metals) 
• Pig : 
- Pork constitutes 10 % of total meat production in country. 
- Processed pork products provide increasing employment 
opportunities
Employment Generation
Female labour employment as percent of total employment by sector 
Sector 
description 1983 1993-94 1999-2000 
Crop production 37.6 37.5 37.0 
Livestock 
production 64.9 70.8 70.6 
Plantation 33.8 32.0 39.9 
Forestry and 
logging 29.0 35.9 51.9 
Fishing 17.8 15.7 11.9 
Agricultural 
services 24.9 43.9 38.9 
Non-farm 24.8 23.1 21.6 
Total 37.3 36.0 35.0 
Women constitute 71 % of labour force in livestock where as in crop farming 
they constitute only 33 % (2003 ) 
source: Results on Employment and Unemployment Situation in India (various issues), 
NSSO, Ministry of Statistics and Program Implementation, Government of India.
• Provides large self employment opportunities and about 
6.7% of work force in rural areas is engaged in this sector. 
• According to NSSO latest quinquennial survey ( July 2009- 
June 2010) : 
Total number of workers engaged in farming of animals and 
fishing were 14.9 million in rural area 
16.5 million in rural and urban areas 
• Dairy industry – employs 8.47 million people on yearly 
basis 
_ mainly in fields of production & 
processing of dairy products.
• Leather industry – direct & indirect employment 
is 2 million 
Flaying, curing & carcass recovery – 8,00,000 
Tanning & finishing _ 1,25,000 
Leather goods & garments _ 1,50,000 
 2 lakh cottage sector units – 1-4 persons 
 3000 small scale units _ 5-20 persons 
 500 medium scale 
mechanized units _ 20-50 persons 
 150 large scale units _ 50 & more
Rural poverty alleviation 
 Important economic activity help to alleviate 
poverty 
 In India food consumption diversified in favour of 
non food grain items like milk, meat, egg & fish 
 Livestock products benefit poor by alleviating 
protein & micronutrient deficiencies 
 Spectacular growth of livestock products attributed 
to initiatives taken by Government 
 Demand is rising for these products in response to 
rising incomes in urban & rural areas
 Rural Poverty is largely concentrated among the landless and the 
marginal households comprising about 70 % of rural population. 
 The challenges for redressing poverty in rural areas - related with 
expansion of economic opportunities, empowerment of poor to take 
advantage of new opportunities and an effective safety net to 
reduce vulnerability and protect poorer of the poor (Kozel and 
Parker 2003). 
 Poverty is primarily caused by low level of assets holding coupled 
with low and uncertain returns. 
 Land and livestock - major assets of rural households for livelihood 
support in general and small and marginal households in particular. 
 As distribution of land holdings in rural India is highly skewed 
towards medium and large framers, rearing of livestock particularly 
small ruminants, pigs and poultry are considered to be the potential 
options for poor households to earn their livelihood on sustainable 
basis.
Distribution of livestock holdings in India 1991-92 
Category Landless, 
<0.002ha 
Marginal, 
0.002-1.0 ha 
Small, 
1.0-2.0 ha 
Medium, 
2.0-4.0 ha 
Large, 
>4.0 ha All 
%househo 
lds 
21.8 48.3 14.2 9.7 6.o 100.0 
Distribution 
of livestock, 
% 
Bovine 2.5 43.8 23.3 17.7 12.7 100.0 
Ovine 5.1 46.2 19.3 15 14.4 100.0 
Poultry 6.4 54.9 19 14.4 5.3 100.0 
Pigs 7.7 49.9 20.4 13.9 8.1 100.0 
Size of 
livestock 
holdings, 
no/100 
households 
Bovine 23 180 324 361 418 198 
Ovine 20 81 115 131 203 85 
Poultry 49 190 223 247 147 166 
Pigs 2 4 6 6 5 4 
Source: NSS Report No. 408, Livestock and Agricultural Implements in Household 
Operational Holdings 1991-92, Ministry of Statistics and Program Implementation, GOI.
Distribution of livestock holdings in India 2002-03 
Category Landless, 
<0.002ha 
Marginal, 
0.002-1.0 ha 
Small, 
1.0-2.0 ha 
Medium, 
2.0-4.0 ha 
Large, 
>4.0 ha All 
%househo 
lds 
31.9 47.1 11.2 6.2 3.4 100.0 
Distribution 
of livestock, 
% 
Bovine 0.6 51.3 21.2 15.0 11.9 100.0 
Ovine 2.1 61.5 15.7 9.6 11.0 100.0 
Poultry 4.4 62.7 17.4 6.8 8.6 100.0 
Pigs 3.2 76.2 12.0 5.5 3.0 100.0 
Size of 
livestock 
holdings, 
no/100 
households 
Bovine 3 169 293 374 535 156 
Ovine 4 84 90 99 203 64 
Poultry 17 164 191 136 306 123 
Pigs 0.3 5.3 3.5 2.9 2.9 3.3 
Source: NSS Report No. 408, Livestock and Agricultural Implements in Household 
Operational Holdings 2002-03, Ministry of Statistics and Program Implementation, GOI.
Rural poverty across major States in India 
state 1983 1987-88 1993-94 1999-2000 
Andhra Pradesh 26.5 20.9 15.9 11.1 
Assam 42.6 39.4 45.0 40.0 
Bihar 64.4 52.6 58.2 44.3 
Gujarat 29.8 28.7 22.2 13.2 
Haryana 20.6 16.2 28.0 8.3 
Karnataka 36.3 32.8 29.9 17.4 
Kerala 39.0 27.1 25.8 9.4 
Madhya Pradesh 48.9 41.9 40.6 37.1 
Maharashtra 45.2 40.8 37.9 23.7 
Orissa 67.5 57.6 49.7 48.0 
Punjab 13.2 12.6 12.0 6.4 
Rajasthan 33.5 33.2 26.5 13.7 
Tamil Nadu 54.0 45.8 32.5 20.6 
Uttar Pradesh 46.5 41.1 42.3 31.2 
West Bengal 63.1 48.3 40.8 31.9 
All India 45.6 39.1 37.3 27.1
Poverty and Livestock Output across major states, 1999-2000
Lorenz curve for distribution of land and livestock 
assets by household classes 2002-03 
Source: The data on value of assets were taken from NSS Report No. 500, Household 
Assets and Liabilities in India 2002, National Sample Survey Organization, Ministry of 
Statistics and Program Implementation, Government of India
Log-linear estimates for poverty and livestock sector 
Explanatory variables Regression coefficient t-value 
Constant 25.945 4.41* 
Per capita GSDP, 
Rs/annum -1.253 -2.93* 
Share of livestock output 
in agricultural output, % -1.351 -3.46* 
Share of AgGSDP in 
GSDP, % -0.788 -1.69 
Landless Households, % -0.455 -2.04** 
Marginal Households, % -0.768 -1.46 
Log-likelihood function -14.669 
* Significant at 1 percent level 
** Significant at 5 percent level
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Economy, emp, poverty

  • 2. Livestock in Indian economy • Animal Husbandry & Fisheries sectors play an important role in the national economy & socio-economic development of rural households. • It contributes about 3.37% to the GDP and 24 % to the Agricultural GDP (2010-11) • supplementing family incomes and generating gainful employment in the rural sector, • providing cheap nutritional food to millions of people. • Over last two decades, livestock sector has grown at an annual rate of 5.6 %, which is higher than the growth of agricultural sector 3.3 %.
  • 3. • Considered as one of the potential sector for export earnings • Makes significant contributions towards conservation of environment. • Livestock sector supplements income from crop production and other sources and absorbs income shocks due to crop failure. • Provide essential foods of animal origin like milk meat & egg • Animal byproducts such as hides, bones, blood, guts etc & organic manure valued at around Rs.21,019 crore.
  • 4. • Bullocks : - Ploughing, transportation of goods & passengers and drawing water from Persian wheels. - DAP of bullocks (60 million) & buffalos (7 million) as well as equines (1 million) & camels (1million)make available 50,000 million units of energy / yr worth Rs.10,000 crores • Biogas : is produced from cattle dung process called digestion. - One cubic meter biogas - one biogas lamp of luminosity equivalent to 60 watt electric lighting for 6-7 hrs. - one h.p engine working for 2 hrs roughly equivalent to 0.6 lt of diesel. - save 3.5 kg of wood / 1.6 kg of coal / 4.7 kw of electricity
  • 5. • Sheep farming : - Provides employment opportunities to large section of population, particularly weaker sections of community in hilly, drought prone & desert areas. - Sheep droppings improve fertility of soil & penning of sheep in harvested fields brings in additional income to the flock owners. - Wool & mutton provide livelihood to large number of people. • Goat : - Contributes 16 % of total meat & 4 % to total milk produced in country. - By export of goat skins, casings & hair, valuable foreign exchange is earned. - Manure produced from droppings enriches the soil.
  • 6. • Poultry farming : - Possible in varied agro climatic environment as the fowl possesses marked physiological adaptability. - It also remunerative following its small space requirement, low capital investment, with good returns from outlay & well distributed turnover throughout the year. - constitutes 14 % of total meat & almost 95 % of eggs are available from poultry farming. - chicken dropping used as fuel for heating of boilers & cleaner than coal fired generation (low in S, Cl & heavy metals) • Pig : - Pork constitutes 10 % of total meat production in country. - Processed pork products provide increasing employment opportunities
  • 8. Female labour employment as percent of total employment by sector Sector description 1983 1993-94 1999-2000 Crop production 37.6 37.5 37.0 Livestock production 64.9 70.8 70.6 Plantation 33.8 32.0 39.9 Forestry and logging 29.0 35.9 51.9 Fishing 17.8 15.7 11.9 Agricultural services 24.9 43.9 38.9 Non-farm 24.8 23.1 21.6 Total 37.3 36.0 35.0 Women constitute 71 % of labour force in livestock where as in crop farming they constitute only 33 % (2003 ) source: Results on Employment and Unemployment Situation in India (various issues), NSSO, Ministry of Statistics and Program Implementation, Government of India.
  • 9. • Provides large self employment opportunities and about 6.7% of work force in rural areas is engaged in this sector. • According to NSSO latest quinquennial survey ( July 2009- June 2010) : Total number of workers engaged in farming of animals and fishing were 14.9 million in rural area 16.5 million in rural and urban areas • Dairy industry – employs 8.47 million people on yearly basis _ mainly in fields of production & processing of dairy products.
  • 10. • Leather industry – direct & indirect employment is 2 million Flaying, curing & carcass recovery – 8,00,000 Tanning & finishing _ 1,25,000 Leather goods & garments _ 1,50,000  2 lakh cottage sector units – 1-4 persons  3000 small scale units _ 5-20 persons  500 medium scale mechanized units _ 20-50 persons  150 large scale units _ 50 & more
  • 11. Rural poverty alleviation  Important economic activity help to alleviate poverty  In India food consumption diversified in favour of non food grain items like milk, meat, egg & fish  Livestock products benefit poor by alleviating protein & micronutrient deficiencies  Spectacular growth of livestock products attributed to initiatives taken by Government  Demand is rising for these products in response to rising incomes in urban & rural areas
  • 12.  Rural Poverty is largely concentrated among the landless and the marginal households comprising about 70 % of rural population.  The challenges for redressing poverty in rural areas - related with expansion of economic opportunities, empowerment of poor to take advantage of new opportunities and an effective safety net to reduce vulnerability and protect poorer of the poor (Kozel and Parker 2003).  Poverty is primarily caused by low level of assets holding coupled with low and uncertain returns.  Land and livestock - major assets of rural households for livelihood support in general and small and marginal households in particular.  As distribution of land holdings in rural India is highly skewed towards medium and large framers, rearing of livestock particularly small ruminants, pigs and poultry are considered to be the potential options for poor households to earn their livelihood on sustainable basis.
  • 13. Distribution of livestock holdings in India 1991-92 Category Landless, <0.002ha Marginal, 0.002-1.0 ha Small, 1.0-2.0 ha Medium, 2.0-4.0 ha Large, >4.0 ha All %househo lds 21.8 48.3 14.2 9.7 6.o 100.0 Distribution of livestock, % Bovine 2.5 43.8 23.3 17.7 12.7 100.0 Ovine 5.1 46.2 19.3 15 14.4 100.0 Poultry 6.4 54.9 19 14.4 5.3 100.0 Pigs 7.7 49.9 20.4 13.9 8.1 100.0 Size of livestock holdings, no/100 households Bovine 23 180 324 361 418 198 Ovine 20 81 115 131 203 85 Poultry 49 190 223 247 147 166 Pigs 2 4 6 6 5 4 Source: NSS Report No. 408, Livestock and Agricultural Implements in Household Operational Holdings 1991-92, Ministry of Statistics and Program Implementation, GOI.
  • 14. Distribution of livestock holdings in India 2002-03 Category Landless, <0.002ha Marginal, 0.002-1.0 ha Small, 1.0-2.0 ha Medium, 2.0-4.0 ha Large, >4.0 ha All %househo lds 31.9 47.1 11.2 6.2 3.4 100.0 Distribution of livestock, % Bovine 0.6 51.3 21.2 15.0 11.9 100.0 Ovine 2.1 61.5 15.7 9.6 11.0 100.0 Poultry 4.4 62.7 17.4 6.8 8.6 100.0 Pigs 3.2 76.2 12.0 5.5 3.0 100.0 Size of livestock holdings, no/100 households Bovine 3 169 293 374 535 156 Ovine 4 84 90 99 203 64 Poultry 17 164 191 136 306 123 Pigs 0.3 5.3 3.5 2.9 2.9 3.3 Source: NSS Report No. 408, Livestock and Agricultural Implements in Household Operational Holdings 2002-03, Ministry of Statistics and Program Implementation, GOI.
  • 15. Rural poverty across major States in India state 1983 1987-88 1993-94 1999-2000 Andhra Pradesh 26.5 20.9 15.9 11.1 Assam 42.6 39.4 45.0 40.0 Bihar 64.4 52.6 58.2 44.3 Gujarat 29.8 28.7 22.2 13.2 Haryana 20.6 16.2 28.0 8.3 Karnataka 36.3 32.8 29.9 17.4 Kerala 39.0 27.1 25.8 9.4 Madhya Pradesh 48.9 41.9 40.6 37.1 Maharashtra 45.2 40.8 37.9 23.7 Orissa 67.5 57.6 49.7 48.0 Punjab 13.2 12.6 12.0 6.4 Rajasthan 33.5 33.2 26.5 13.7 Tamil Nadu 54.0 45.8 32.5 20.6 Uttar Pradesh 46.5 41.1 42.3 31.2 West Bengal 63.1 48.3 40.8 31.9 All India 45.6 39.1 37.3 27.1
  • 16. Poverty and Livestock Output across major states, 1999-2000
  • 17. Lorenz curve for distribution of land and livestock assets by household classes 2002-03 Source: The data on value of assets were taken from NSS Report No. 500, Household Assets and Liabilities in India 2002, National Sample Survey Organization, Ministry of Statistics and Program Implementation, Government of India
  • 18. Log-linear estimates for poverty and livestock sector Explanatory variables Regression coefficient t-value Constant 25.945 4.41* Per capita GSDP, Rs/annum -1.253 -2.93* Share of livestock output in agricultural output, % -1.351 -3.46* Share of AgGSDP in GSDP, % -0.788 -1.69 Landless Households, % -0.455 -2.04** Marginal Households, % -0.768 -1.46 Log-likelihood function -14.669 * Significant at 1 percent level ** Significant at 5 percent level