Recognizing the growing contribution of the livestock sector, Finance Minister Nirmala Sitharaman announced several measures in the Union Budget 2026-27 to strengthen animal husbandry, dairy and poultry sectors at the grassroots level.
“To provide quality employment opportunities in rural and sub-urban areas, we will support the animal husbandry sector in entrepreneurship development through credit-linked subsidy programmes, expansion and modernization of livestock enterprises,” Sitharaman said.
The Finance Minister also said that creation of livestock, dairy and poultry-centric integrated value chains will be enhanced besides encouraging the formation of livestock farmer producer organisations.
Sitharaman said, “Livestock contributes about 16 per cent to the agricultural income, including that of poor and marginal families. To increase the availability of veterinary professionals to more than 20,000, I propose to launch a loan linked capital subsidy support scheme for setting up veterinary and paravet colleges, veterinary hospitals, diagnostic laboratories and breeding facilities.” Further collaboration between Indian and foreign institutions will also be facilitated.
It is important to emphasize on strengthening the livestock sector, as this sector is growing at a rate of 7 percent annually, which is higher than the overall agriculture sector.
“In animal husbandry, credit-linked subsidy programs and technology modernization in dairy and poultry directly address long-standing challenges around productivity and efficiency. By strengthening value chains ranging from access to veterinary professionals to agricultural production and processing, the Budget supports greater participation of farmers in high-efficiency, value-added sectors and better availability of milk, eggs and protein-rich foods, highlighting the growing role of allied sectors in India’s journey towards a developed India,” it said. CLFMA President Divya Kumar Gulati said.
Gulati said, “Extension of tax deduction to cooperative members supplying animal feed is another practical measure that helps reduce input cost pressures and strengthen the cooperative ecosystem. Taken together, these initiatives can improve farmer-industry relations, ensure more consistent raw material supply and support sustainable, organized growth in India’s protein sectors.”
Sunil Kataria, MD & CEO, Godrej Agrovet Ltd, said, “The targeted focus on livestock, fisheries and allied sectors reflects a clear shift towards diversified and income-resilient farming systems. In this context, capital support linked to the new loan for veterinary education, hospitals, diagnostics and breeding infrastructure will expand capacity and high-quality services in rural India. Additionally, future science-led interventions in the areas of animal genetics and breeding will help accelerate livestock productivity and farm incomes. “Help will be available.”
Published on February 1, 2026
