India Holds Firm on Dairy Trade Barriers in New Zealand Pact

India has not granted any import duty concessions in its dairy sector to New Zealand under a new free trade agreement. The dairy industry remains a protected area due to political and economic sensitivities, despite the conclusion of bilateral trade negotiations.

In a significant move, India has decided not to offer any import duty concessions in the dairy sector to New Zealand under the newly concluded bilateral free trade agreement, a government official confirmed on Monday.

The agreement's finalization saw both nations announcing the completion of discussions. However, an official emphasized the protections for the dairy industry, stating, "The dairy sector is completely a red line for us. No duty concessions under the pact in the sector."

India's stance stems from a historically cautious approach, resisting bulk dairy imports in previous agreements. While New Zealand stands as a major global dairy exporter, India's large population of small dairy farmers makes market protection a politically sensitive issue. Current trade between the two in this sector is minimal, with New Zealand exporting dairy products worth just USD 1.07 million to India in FY2025.

(With inputs from agencies.)