Project title: Subsidies and Investments in Livestock sector in India

Project leader: Dr. M. B. Dastagiri

Project team:     -

Background:

Agricultural and food subsidies have been a sensitive and widely debated issue in the context of the raising fiscal deficit. The subsidies provided by the Government of India to livestock sector are however, minimal and also there is a decline in public investment in livestock. Government spending in livestock sector was not substantial compared to agriculture although this sector contributes 25 per cent (1999-2000) of agricultural GDP.  

Objectives:

1.    To examine the nature and extent of different types of subsidies and support provided in different sectors/species of livestock.

2.    To examine the levels and trends of investment in livestock sector in India during 1980-2000.

3.    To identify key issues and to recommend policy directions to promote the domestic   livestock sector's growth and development w.r.t. subsidies and investments.

Study area: All India --- 1970-2005

Methodology:

1.  Computation of Compound Growth rates,  means and averages

2.  Regression analysis

3.   Graphical  representation

Key findings:

1. The growth rate in livestock GDP is steady about 4 per cent but agricultural GDP is fluctuating.

2. Government expenditure on Animal Husbandry and Dairying (GEAHD) since 90’s onwards is declining which is a serious concern and needs policy attention.

3. The investment and output growth shows that there has been no proper economic rationale was used in allocation of funds in livestock sector.

4. The estimated coefficient of GEAHD in all the cases shows that increase in GEAHD has significantly contributed to increase in the livestock GDP and in the reduction of rural and national poverty. Hence, to increase livestock GDP and reduce poverty, Indian government should    increase government expenditure in livestock liberally.

Funding agency: NCAP