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India will never permit dairy openings or genetically modified goods in trade pacts, says Goyal

Reported by Faizan Khan (Staff Writer) · The Hindu - Business ·

Verified — Confirmed by a second source: Business Standard - Top Stories

Confirmed by a second source: Business Standard - Top Stories

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India will never permit dairy openings or genetically modified goods in trade pacts, says GoyalPhoto: Wikimedia Commons

India has never opened its dairy sector in any free trade agreement and will refuse to allow imports of genetically modified products. Commerce and Industry Minister Piyush Goyal shared this stance during an address to students at Kirori Mal College in Delhi, while emphasizing that the nation protects farmers, fishermen, and micro, small, and medium enterprises.

Trade Protections And Exports

Foreign cheese production often involves rennet, an enzyme from calf stomach linings, which prompts strict certification rules in India to protect religious values. For broader trade, India pursues preferential market access for textiles, pharmaceuticals, agricultural goods, and gems and jewellery to secure lower duties than competitors like China and Vietnam. Meanwhile, export targets for goods and services sit at one trillion dollars for the 2026-27 period, with April-to-September figures reaching about 480 billion dollars, representing a fourteen percent year-on-year rise.

Manufacturing And Supply

Addressing domestic manufacturing, the government aims to boost production, government positions, and startup opportunities. Regarding industrial supplies, if China restricts tunnel boring machine shipments, India plans to build them domestically. Talks with aircraft makers Airbus, Boeing, and Embraer also aim to expand fleet availability and support tourism.

Context

Free trade agreements involve complex negotiations where nations balance market access with domestic protections for vulnerable sectors like agriculture. Policymakers often restrict genetically modified items and foreign dairy to safeguard local livelihoods and address food safety concerns.

ExplainerWhy this matters

What Happened

Commerce and Industry Minister Piyush Goyal stated that India guards its agricultural, dairy, and farming sectors fiercely within international trade pacts, barring genetically modified goods and dairy entries completely.

Why It Matters

Agriculture supports a massive portion of the Indian population, particularly small and marginal farmers. Allowing subsidized, large-scale imports of foreign dairy or genetically modified crops could crash domestic market prices and threaten rural livelihoods, food safety standards, and religious customs.

What Happens Next

Trade negotiations with nations like the United States will likely continue to encounter resistance regarding agricultural and dairy access. Observers will also watch official trade data releases and domestic manufacturing policies to track export milestone progress.

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