Himachal Pradesh has introduced Australian Merino sheep to improve wool quality and raise output. The ₹6-crore programme began in 2021 under the National Livelihood Mission with 240 Merino sheep imported from Australia. Crossbreeding Merino with indigenous Gaddi sheep through artificial insemination has produced 800 healthy lambs. The aim is to reduce wool fibre thickness from about 27 microns to 21–22 microns for finer, apparel-grade wool. The State plans to double annual wool production from about 1,500 tonnes to 3,000 tonnes by 2027.