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41 million buffaloes and 47 million cows in India will be given "animal health cards" which are similar to the Aadhar system in place for India's human citizens.
These animals are considered sacred to the Hindu community and will be assigned 12-digit identification numbers by the end of 2017 as initiated by Prime Minister Narendra Modi.
This aims to boost the income of the dairy sector by 2022.
The owners will hold the identity cards and can track activities and information about each cattle, through an online database.
Timely vaccinations and monitoring breeding cycles will be ensured while allowing scientific intervention to improve breeding and quality milk production.
The tags are designed to last for years and weigh just 8g to cause minimal inconvenience to the animals.