NEW DELHI, 1 February 2026: The Union Budget 2026-27 has placed renewed emphasis on the Animal Husbandry and Dairying sector, announcing a series of measures aimed at strengthening rural livelihoods, improving farmer incomes, and modernising India’s livestock economy. The government’s strategy focuses on better infrastructure, animal health services, and stronger dairy value chains from farm to market.
A key highlight is the expansion of veterinary infrastructure and doorstep services, including mobile veterinary units to ensure faster access to treatment and preventive care for livestock. To address the shortage of professionals, the Budget proposes increasing the number of veterinarians to over 20,000 through a credit-linked capital subsidy scheme that will support the establishment of private veterinary and para-veterinary colleges, animal hospitals, diagnostic labs, and breeding centres. Collaborations with foreign institutions are also planned to enhance skill development.
The Budget has also prioritized financial and institutional support to Livestock Farmer Producer Organisations (LFPOs) and dairy cooperatives. Measures to strengthen milk collection, processing, and value addition aim to build a more efficient dairy value chain and improve farmer realization.
A credit-linked subsidy programme for animal husbandry entrepreneurship has been introduced to encourage modernization across livestock, dairy, and poultry enterprises. The scheme will enable farmers to adopt modern equipment, enhance productivity, and develop sustainable value chains.
Animal health and productivity remain central to the reforms. Increased allocations for vaccination and disease-control programmes are expected to safeguard livestock assets and reduce production losses, while initiatives for fodder development, feed security, and climate-resilient practices promote long-term sustainability.
The Budget also provides tax relief and financial incentives for cooperatives, including deductions on cattle feed and cotton seed supplies and exemptions on inter-cooperative dividends. Additionally, excluding the biogas component from excise duty calculations on biogas-blended CNG is expected to encourage new biogas plants and support circular, green dairy practices.
Together, these initiatives aim to create jobs, enhance nutritional security, and strengthen livestock-based rural incomes, positioning animal husbandry as a key driver of India’s agricultural growth.
