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India ranks first in global milk production contributing 20.17 percent. The dairy sector in India has grown substantially over the years and has emerged as a major driver of overall growth in the sector. India has achieved an annual output growth of 198.44 million tonnes during the year 2019 - 2020. The all India per capita availability of milk is 406 grams per day in 2019-20.

As per the 20th Livestock census, India has a vast resource of animal population totalling 536.76 million livestock, comprising about 193.46 million cattle and 109.85 million buffaloes.

Allied sectors including animal husbandry, dairying and fisheries are steadily emerging to be high growth sectors. The livestock sector has grown at a CAGR of 8.15 percent over the last five years ending 2019-20. Dairying sector is also a significant employer of the surplus workforce engaged in agriculture, which employs more than 8 crore farmers directly.

Milk is the single largest agricultural commodity by value contributing 5 percent of the national economy. Dairying has become an important secondary source of income for millions of rural families and has assumed the most important role in providing employment and income generation opportunities mainly for women and marginal farmers.

Dairying plays an important role in socio-economic development of rural households in the country. Major share of the milk in the country is produced by small, marginal farmers and landless labourers. Small land-base encourages the farmers to practice dairying as an occupation subsidiary to agriculture.

Income from agriculture is seasonal, whereas dairying provides year-round income and generates gainful employment in the rural sector. The drivers of demand for milk in India are population growth, urbanisation and increasing per capita income. The dairy sector is therefore an important vehicle for inclusive development in the country.

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