Introduction India being an agricultural country with most of population being engaged in primary activities needs to strengthen its rural base for balanced economic development. The prospects of creating a regional balance between the rural and urban sectors can be achieved through the proper exploitation and management of local resources and development of various agro-based industries. The new ventures should be made to develop the allied sectors i.e., agro-forestry, apiculture, pisciculture, sericulture, mushroom cultivation and dairy farming. These measures will help in income generation besides being able to provide employment to the large number of rural population. Milk production in India is predominantly the domain of small farmers in mixed farming system. Dairy enterprise plays a very vital role in the rural economy of India. It provides income and employment, not only to the workers section of the society, but also to the farming community of the country in general. Milk and its products, serves as one of the most important sources of food for all civilized nations. The highly developed and prosperous people consume the large quantity of milk and dairy products. India ranks first in number of animals and production of milk in the world. India succeeded in producing 132.4 million tons of milk in the year 2012-13 and became world’s largest milk producer. In 1991-92 the per capita availability was 178 gm. / day. The figure has reached up to 290 gm. /day in the year 2011-12. In dairy, India shares 15 Percent (2010) production in the world.