Livestock is a vital component of Indian economy in general and of agricultural sector in particular. In rural India over 15–20% families are landless and about 80% of the land holders belong to small and marginal farm size groups, livestock provides livelihood to two-third of the rural population. Livestock sector provides employment to about 8.8% Indian population. Contribution of livestock sector in GDP was 4.11% and it contributed 25.6% to the Agricultural GDP during 2018-2019. Livestock production constitutes an important component of Agricultural economy in Bihar as it assists in supply of food and nutrition, enhancement of income, livelihood and diversification of agricultural activities. Meanwhile, the livestock sub-sector contributed about 27% to the agricultural GSDP and 5% to state income or GSDP in 2012. Bihar has made great progress in dairy and is recognized for its high milk production from cows, buffalo and goats. Bihar’s milk production increased to 92.41 lakh tonnes in 2017-18 from 71.97 lakh tonnes in 2013-14, indicating an annual growth rate of 6.33%, during the five-year period. Productivity of milk per lactating cattle was found comparatively low as compared to others states Like Punjab, Gujarat, UP and MP. Contribution of livestock share in GVOA was found 25.4% in TE-2002-03 and increased to 31% in TE-2013-14 in Bihar whereas, the all-India share of livestock in GVOA stood at 26% in TE 2013-14. The share of meat in the total value of output from livestock sector has declined while that of milk has increased. The share of milk in GVOA has increased from 14% to 23% between TE-2003-04 and TE-2013-14, while at the all-India level; the share of milk in GVOA remained at 17% during the same period. Bihar has immense potential in livestock and dairy sector. If harnessed properly by suitable policy initiatives could be helpful in augmenting income, generating employment and providing nutritional security to state in particular and nation in general.