India will never open up the dairy sector to free trade, commerce minister Piyush Goyal said on Monday shortly after New Delhi announced the conclusion of a free trade agreement with New Zealand.
The dairy sector – apart from agriculture – is believed to be a major stumbling block in the conclusion of a similar agreement with the US, India’s largest export partner.
Goyal said talks with Washington over a trade pact were at an “advanced stage” and that New Delhi will soon launch talks for the terms of a trade deal with Canada.
Goyal’s comments were reported by Reuters.
Earlier this month, US Trade Representative Jamieson Greer had told the US Senate Appropriations Subcommittee that India had put forward some of the “best offers we’ve ever received as a country.”
For talks long mired in stalemate, it was a marked shift in tone. India, he had said, remained “a very difficult nut to crack,” but he added: “They’ve been quite forward leaning.”
India has not given any duty concessions in the dairy sector to New Zealand either though it was a key demand from that country.
Under the India-New Zealand free trade agreement, a host of domestic goods from sectors such as textiles, footwear, engineering and marine products will get duty-free access in New Zealand.
Under the pact, likely to be signed in the next three months and implemented next year, New Zealand has committed to facilitating investments of USD 20 billion into India over the next 15 years.
"Elimination of tariffs on 100 per cent of its tariff lines provides duty-free access for all Indian exports," the commerce ministry said.
This market access enhances the competitiveness of India's labour-intensive sectors, including textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles, it said.
It also said that India has secured commitments across a wide range of high-value sectors, including IT and IT-enabled services, professional services, education, financial services, tourism, construction and other business services, opening substantial new opportunities for Indian service suppliers and high-skill employment.
The FTA provides improved entry and stay provisions for Indian professionals, students and youth, including work opportunities during studies, post-study work pathways, dedicated visa arrangements and a Working Holiday visa framework.
It has also opened Skilled Employment Pathways through a new Temporary Employment Entry Visa pathway for Indian professionals in skilled occupations, with a quota of 5,000 visas at any given time and a stay of up to three years.
"This pathway covers Indian professions such as AYUSH practitioners, yoga instructors, Indian chefs, and music teachers, as well as high-demand sectors including IT, engineering, healthcare, education, and construction, strengthening workforce mobility and services trade," it said.
Establishment of dedicated Agri-Technology Action Plans on kiwifruit, apples and honey, focus on productivity enhancement, technology, research collaboration, quality improvement and value-chain development, to strengthen domestic capabilities and support Indian farmers, it said.
The cooperation includes the establishment of Centres of Excellence, improved planting material, capacity building for growers and technical support for orchard management, post-harvest practices, supply chain performance, and food safety.
Bilateral merchandise trade reached USD 1.3 billion in 2024-25, while total trade in goods and services stood at about USD 2.4 billion in 2024, with services trade alone reaching USD 1.24 billion, led by travel, IT and business services.
"The FTA provides a stable and predictable framework to unlock the full potential of this relationship," it said.
Talks on the pact began in May.
Commerce secretary Rajesh Agrawal said that although only five formal rounds were held for the pact, both sides remained in continuous touch for the closure of negotiations.