Sheep is a important livestock species of India. They contribute greatly to the agrarian economy, especially in the arid/semi-arid and mountainous areas where crop or dairy farming are not economical. They play an important role in the livelihood of a large percentage of small and marginal farmers and landless laborer's engaged in sheep rearing. A number of rural-based industries use wool and sheep skins as raw material. Sheep manure is an important source of soil fertility, especially in southern states.

Sheep in India are mostly maintained on natural vegetation on common grazing lands, wastelands and uncultivated (fallow) lands, stubbles of cultivated crops and top feeds (tree loppings). Rarely are they kept on grain, cultivated fodder or crop residue. Sheep are mostly reared for wool and meat. Sheep skins and manure constitute important sources of earning, the latter particularly in southern India. Milk from sheep is of limited importance and that too in very limited areas of Jammu and Kashmir, Rajasthan and Gujarat. Indian sheep are not regarded as dairy sheep.

The productivity of Indian sheep is lower than those of agriculturally more advanced countries. Yet considering their nutritional and physical environment, their productivity cannot be considered as inefficient. The major reasons for low productivity are inadequate grazing resources, diseases causing high mortality, morbidity and consequent reduced production, and serious lack of organized effort for bringing genetic improvement.