Abstract

Dairy farming is a crucial pillar of India's agricultural economy, contributing approximately 4.5percentage to the national GDP and employing over 8 crore farmers, the majority of whom are women. As the world's largest milk producer, India has seen remarkable growth in dairy production, driven by technological advancements, cooperative movements like AMUL, and government initiatives. The study examines the economic significance of dairy farming in India, analyzing its contributions to rural livelihoods, employment, food security, and national income. The Compound Annual Growth Rate (CAGR) of milk production highlights key transformations in the sector, from the modest growth of 1.64percentage (1951-61) to a peak of 5.60percentage (2011-21), with fluctuations influenced by policy changes, economic liberalization, and the impact of the COVID-19 pandemic. Despite challenges such as low productivity, climate change, and supply chain inefficiencies, the sector continues to expand through breed improvement, cold chain logistics, and increasing global demand for dairy products. With India’s per capita milk availability surpassing global averages, dairy farming remains a key driver of inclusive economic growth and rural development. The study underscores the need for sustainable dairy farming practices, policy support, and investment in modern technology to enhance productivity and global competitiveness.

Keywords:

Dairy farming, Economic contribution, rural livelihoods, Employment generation, Milk production, Compound Annual Growth rate (CAGR) Food security

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