A while ago, Prime Minister Narendra Modi, during an address in Malaysia, talked about how India has emerged as a trusted partner for multiple nations.
India has grabbed several trade deals with multiple countries, including New Zealand, the UK, the EU, and most recently with the United states.
India upholds strict protections for its agriculture, dairy, and fisheries sectors in recent trade deals, including the newly concluded India-EU FTA, by fully excluding sensitive items from liberalization to shield small farmers and cultural priorities.
Commerce Minister Piyush Goyal and EU officials have confirmed these “red lines” remain intact across pacts with the US, New Zealand, and now the EU, preventing import surges that could harm 80 million dairy livelihoods.
Multiple trade deals and the protection of ‘red lines’
India and the United States advanced their bilateral ties on Saturday by finalising an interim trade agreement. A key highlight is India’s steadfast commitment to shielding its agriculture and dairy sectors, which rank among the nation’s most politically charged and economically vital domains.
Following the trade agreement’s announcement, Commerce Minister Piyush Goyal posted on X, stressing the priority of protecting farmers’ livelihoods. He stated, “Under the India-US trade pact, we’ve shielded dairy, fruits, vegetables, spices, and grains. This secures domestic farmers, bolsters local agriculture via preferred market access, and advances our vision of a self-reliant India.”
Similar stands in other trade deals
India protects its dairy, agriculture, and fisheries sectors in recent trade deals with the US, EU, and New Zealand by fully excluding sensitive items from tariff cuts, keeping high duties like 30-60% on milk powder, cheese, and whey intact, and allowing only tiny quotas for non-competitive uses such as re-export processing.
This shields over 80 million small farmers, who make up 90% of dairy producers with just 1-2 animals, from cheap subsidised imports that could destroy rural jobs, while banning “non-veg milk” from cows fed animal by-products due to Hindu cultural beliefs in cow purity for rituals and vegetarian diets.
The January 2026 India-EU FTA at the New Delhi Summit carved out dairy staples and fisheries entirely, respecting mutual “red lines” per EU Commissioner Maros Sefcovic, and focused instead on services, autos, and wine without risking India’s rural economy.
For the December 2025 India-New Zealand FTA covering 70% tariff lines, core dairy stayed excluded with duties unchanged, alongside onions, sugar, spices, and most fisheries; New Zealand got phased relief on infant formula and a small milk albumin quota matching current low volumes plus 100% zero-duty on Indian goods and 5,000 work visas, despite Foreign Minister Winston Peters calling it a “bad deal” over dairy lockout, forcing Prime Minister Luxon to ratify with opposition help.
Why does New Delhi Protect Farm and Dairy?
New Delhi protects its farm and dairy sectors primarily to safeguard over 80 million small and marginal farmers, who form 90% of producers with just 1-2 animals, from cheap subsidised imports that could devastate rural livelihoods.
High tariffs and full exclusions in FTAs act as buffers against competitive floods from the US, EU, or New Zealand.
Agriculture employs a major part of India’s workforce and ensures food security for 1.4 billion people via mechanisms like Minimum Support Prices (MSP).
Smallholders face low productivity due to fragmented landholdings, climate risks, and limited mechanisation; protection prevents market collapse against heavily subsidized foreign goods.
Dairy holds sacred status in Hinduismm cows symbolise purity for rituals and vegetarian diets, prompting rejection of “non-veg milk” from animal-fed or hormone-treated cows.
Politically, farmer protests make concessions electoral poison, Commerce Minister Piyush Goyal called safeguards “self-reliant India” priorities.
India keeps a list of over 300 sensitive items out of trade deals with the US, EU, and New Zealand.
This list excludes dairy products like milk, butter, and yogurt, plus grains such as wheat and rice, and fish. High import taxes on these stay the same.
In return, partner countries get easier access to India’s non-sensitive exports, like textiles.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
