Reasons To Invest

In 2024, the Indian meat market is forecast to have a value of $4.9 bn
100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured and / or produced in India
Owing to rapid urbanization in India, there is an increasing demand for poultry products with 80% of the poultry and meat demand coming from the urban areas

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FDI Norms

100% FDI permitted through automatic route for Animal Husbandry (including breeding of dogs, fish farming, aquaculture, under controlled conditions) 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured and / or produced in India. 100% FDI permitted through automatic route for food processing.

Please refer to FDI policy here.

100%

FDI Allowed

Growth Drivers

Growth drivers for Poultry: Due to higher dietary recommendation, consumer awareness for quality, the egg industry is expected to grow 5 times by 2030.

Growth drivers for Meat: In 2024, the Indian meat market is forecast to have a value of $4.9 bn.

Growth Drivers for Animal Feed: Feed manufacturing potential has Internal Rate of Return (IRR) of 17-20% and a payback within 9-12 years. Compound feed requirement to double over the next 5 years with potential capacity addition of 10-18 MMT.

Growth drivers for Breed Improvement: Indian pet care market is expected to grow with a CAGR of more than 20% by 2021-22

FDI Policy

Government Support

Animal Husbandry infrastructure development fund

"Prime Minister's AtmaNirbhar Bharat Abhiyan stimulus package mentioned the creation of a Rs.15,000 crore Animal Husbandry Infrastructure Development Fund (AHIDF). The scheme's principal purpose is to boost milk and meat processing capability and product variety, raise farmers' price realisation, and encourage exports and increase the livestock industry's export contribution.

AHIDF scheme has been approved for incentivizing investments to establish:

(I) Dairy processing and product diversification infrastructure
(II) Meat processing and product diversification infrastructure
(III) Animal feed plant
(IV) Breed Improvement Technology and Breed Multiplication Farms
(V) Setting up of Veterinary Vaccine and Drugs Production Facilities
(VI) Animal  Waste to Wealth Management (Agri waste management)

Interest subvention: 3% for all Eligible Entities
Maximum repayment Period: 8 years inclusive of moratorium of 2 years on principal amount. 
Credit Guarantee Fund of INR 750 crore with Guarantee Coverage upto 25% of Credit facility has been setup and would be managed by NABARD. Beneficiaries can also avail credit guarantee cover from CGTMSE scheme for the loan amount upto Rs 2.00 crores with the guarantee cover of 85% of loan amount.

To know more click here- https://ahidf.udyamimitra.in/PDF/ANIMAL-HUSBANDRY-INFRASTRUCTURE-DEVELOPMENT-FUND.pdf 

Pradhan Mantri Kisan Sampada Yojana

"Pradhan Mantri Kisan Sampada Yojana (PMKSY)' has been extended till March 2026 with an allocation of INR 4,600 crore. 

The following schemes will be implemented under PM Kisan SAMPADA Yojana :

1. Integrated Cold Chain and Value Addition Infrastructure
2. Creation/ Expansion of Food Processing and Preservation Capacities (Unit Scheme)
3. Infrastructure for Agro-processing Clusters
4. Food Safety and Quality Assurance Infrastructure
5. Human Resources and Institutions –Research & Development
6. Operation Greens

PM Kisan SAMPADA Yojana is estimated to leverage investment of INR 11,095.93 crore, benefiting 28,49,945 farmers and generating 5,44,432 direct/indirect employment in the country by the year 2025-26.

To know more click here- https://www.mofpi.gov.in/sites/default/files/PMKSY%20letter.pdf

Foot & Mouth Disease Control Programme (FMD-CP)

The objective of this scheme is to prevent economic losses due to Foot and Mouth Disease and to develop herd immunity in cloven- footed animals. The expense of the vaccine, maintenance of the cold chain, and other logistical assistance for vaccination are all covered 100% by central funding. State governments offer additional infrastructure and staff to conduct FMD vaccination in a systematic way, which is critical for successful control.

Brucellosis Control Programme (Brucellosis - CP)

The aim of this programme is to reduce impact of disease on human health and reduce the economic losses. this is a time bound 5 year intensive location target control programme. The Brucellosis-CP Plan calls for vaccination of female calves between the ages of 6 and 8 months in all states. Adulthood vaccination will likewise be implemented in stages, covering all unvaccinated adult female bovines.
 

Trade Scenario

In 2019, the Exports valued by Husbandry and Dairying Department in India stands at $4.1 bn.
In FY 2020-21, India exported USD 2.85 Billion worth of frozen bovine meat.
India is the largest exporter of sheep and goat meat in the world which is valued at $91 mn in 2019-20, major export destinations are: UAE, Qatar, Kuwait, Saudi Arabia and Oman
India's export of eggs was valued at $12 mn in 2019-20, major export destinations being: Japan, Vietnam, Indonesia, Thailand and the Philippines
India's export of processed meat is valued at $2 mn with an increase of 90.4% from 2018-19 to 2019-20, major export destinations being: Myanmar, UAE, Thailand, Qatar and Bhutan
India exported USD 2.46 Million worth of swine meat in FY 2020-21.
India exported USD 23.79 Million worth of poultry eggs in FY 2020-21.

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Gallery

Dec 12, 2021The scope of the facility of Kisan Credit Card has been extended to livestock farmers and fishermen
PM Modi
Dec 12, 2021The scope of the facility of Kisan Credit Ca…The scope of the facility of Kisan Credit Card has been extended to livestock farmers and fishermen
PM’s video address at ‘Global Citizen Live’
Sep 25, 2021PM’s video address at ‘Global Citizen Live’PM’s video address at ‘Global Citizen Live’
Prime Minister Narendra Modi meets Vice President Harris on 3-day visit to US
Sep 24, 2021Prime Minister Narendra Modi meets Vice Pres…Prime Minister Narendra Modi meets Vice President Harris on 3-day visit to US

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FAQ

FAQs

What activities can be supported related to animal feed?

Establishment of Animal Feed manufacturing and strengthening of existing units/ plant of the following categories:


a) Establishment of Mini, Medium and Large Animal Feed Plant, Total Mixed Ration Block Making Unit, By pass protein unit, Mineral Mixture Plant, Enrich Silage making unit, Animal Feed Testing Laboratory and any other activities related to animal feed manufacturing.
b)  Establishment of Animal Feed manufacturing and strengthening of existing units/ plant of the following categories:
c)  Establishment of Mini, Medium and Large Animal Feed Plant, Total Mixed Ration Block Making Unit, By pass protein unit, Mineral Mixture Plant, Enrich Silage making unit, Animal Feed Testing Laboratory and any other activities related to animal feed manufacturing.
 

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What activities can be covered under Meat Sector?

a) Establishment of new meat processing unit and strengthening of existing meat processing facilities for sheep/goat/ poultry/pig/buffalo in rural, semi-urban and urban areas.
b) Large scale integrated meat processing facilities/ plant/ unit.
c) Product Diversification: Establishment of new or strengthening of existing value addition facilities for meat products like Sausage, nuggets, ham, salami, bacon or any other meat products. 

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What are ‘Rashtriya Kamdhenu Aayog’ & ‘Rashtriya Gokul Mission’?

The Government of India has constituted the Rashtriya Kamdhenu Aayog for the effective implementation of laws and welfare schemes for cows with a corpus of $ 71.5 million. It was set up with the objective to organize animal husbandry on modern and scientific lines and to take steps for preserving and improving breeds and prohibiting the slaughter of cows and calves and other milch and draught cattle. 


Rashtriya Gokul Mission (RGM) was launched in December 2014 with an outlay of $ 289 million for development and conservation of indigenous breeds through selective breeding in the breeding tract and genetic upgradation of nondescript bovine population. The scheme comprises two components namely National Programme for Bovine Breeding (NPBB) and National Mission on Bovine Productivity (NMBP).

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What is the Animal Husbandry Infrastructure Development Fund (AHIDF)?

The Animal Husbandry Infrastructure Development Fund was recently announced as a part of Prime Minister’s Atma Nirbhar Bharat Abhiyan stimulus package with an outlay of $ 2.1 billion. It has been approved for incentivizing investments to establish dairy processing, meat processing, animal feed plant and value addition infrastructure.
 

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What are the financial incentives available to eligible beneficiaries under the Animal Husbandry Infrastructure Development Fund (AHIDF)?

The Government of India will provide a 3% interest subvention to eligible beneficiaries. There will be a 2 years moratorium period for the principal loan amount and 6 years repayment period thereafter. Additionally, projects will be a eligible for a loan up to 90% of the cost of the project. Moreover, a credit guarantee fund of $ 107 million has been set up to provide guarantees for viable projects. 
 

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