India Stands Firm on GM Products and Dairy Imports in Trade Agreements, Says Piyush Goyal
India will continue to protect its agricultural and dairy sectors while negotiating international trade agreements, Commerce and Industry Minister Piyush Goyal has reaffirmed. Making the government's position clear, Goyal stated that India would not allow genetically modified (GM) products or offer concessions on dairy imports under Free Trade Agreements (FTAs). His remarks highlight India's approach of expanding global trade opportunities while safeguarding domestic farmers, dairy producers and other key industries.
Speaking at Kirori Mal College, University of Delhi, on November 3, 2026, Goyal emphasised that India's dairy sector would remain protected in future trade negotiations. He noted that the country had consistently maintained its position on dairy imports and would not compromise on sensitive agricultural products. The government, he added, is focused on securing better opportunities for Indian businesses in international markets without putting domestic livelihoods at risk.
India Maintains Strict Position on Genetically Modified Products
Genetically modified products have remained an important subject in India's agricultural and food policy. While several countries have adopted genetic engineering in agriculture to improve crop productivity and resistance to pests, India continues to apply strict regulatory requirements to such products.
Reiterating the country's position, Goyal said India would not permit GM products as part of its trade arrangements. The approach reflects the importance of maintaining food safety standards, protecting agricultural interests and ensuring that imported products meet India's regulatory requirements.
India's existing regulatory framework requires prior approval for genetically modified food products under the applicable rules. The Genetic Engineering Appraisal Committee (GEAC) plays a key role in assessing relevant applications, while the Food Safety and Standards Authority of India (FSSAI) oversees food safety and compliance requirements. These regulations form an important part of the country's broader approach to managing GM products.
Dairy Imports Remain a Sensitive Area in Trade Negotiations
Goyal also made it clear that India would not provide tariff concessions on dairy imports under its trade agreements. The decision is significant because the dairy sector supports millions of farmers and rural households across the country.
India has one of the world's largest dairy industries, with milk production serving as an important source of income for small and marginal farmers. Greater exposure to international dairy imports could create competitive challenges for domestic producers, particularly those operating on a smaller scale.
The minister also highlighted religious and cultural considerations associated with certain dairy products manufactured abroad. He referred to rennet, an enzyme traditionally obtained from the stomach lining of young calves and commonly used in cheese production. Goyal emphasised the importance of appropriate certification to ensure that imported dairy products comply with India's requirements concerning prohibited animal-derived ingredients.
India-US Trade Negotiations and Agricultural Interests
India's position on GM products and dairy imports is particularly relevant to its trade negotiations with the United States. The US is a major exporter of agricultural commodities, including genetically modified crops and dairy products, and has previously raised concerns about India's agricultural import regulations.
The Office of the United States Trade Representative (USTR) has highlighted India's dairy certification requirements and restrictions on certain agricultural imports in its trade reports. These differences have remained important subjects in discussions between the two countries.
While the United States seeks greater access for its agricultural products, India continues to emphasise the need to protect its farmers, food standards and domestic industries. Goyal's statement reinforces the country's intention to maintain safeguards in sensitive sectors even as both nations explore opportunities to expand bilateral trade.
Free Trade Agreements Focus on Balanced Market Access
India's approach to trade negotiations is not limited to restricting imports. The government is also working to secure better access for Indian products in international markets through Free Trade Agreements.
Recent trade arrangements, including the India-New Zealand agreement, reflect India's effort to expand economic cooperation while retaining protection for sensitive sectors. Dairy products have remained among the important areas where India has maintained safeguards.
The government is seeking improved market access for Indian textiles, processed food, marine products, agricultural and horticultural produce, footwear, leather, gems and jewellery, and pharmaceuticals. Lower import duties in partner countries could help Indian exporters compete more effectively with suppliers from countries such as Vietnam, Indonesia, Malaysia and China.
This approach aims to create opportunities for domestic manufacturers, farmers and exporters while ensuring that trade liberalisation does not expose vulnerable industries to unfair competitive pressure.
Protecting Farmers, MSMEs and Employment Opportunities
Goyal also underlined the importance of protecting farmers, fishermen and Micro, Small and Medium Enterprises (MSMEs) during international trade negotiations. These sectors contribute significantly to India's economy and provide employment to millions of people.
The government's broader trade strategy focuses on strengthening domestic production, increasing exports, attracting investment and creating new employment opportunities. Improved access to international markets can help Indian businesses expand their operations, reach new customers and strengthen their global competitiveness.
At the same time, maintaining safeguards for sensitive agricultural and dairy products provides greater stability for domestic producers. India's objective is to ensure that international trade partnerships deliver benefits across the economy rather than creating difficulties for sectors that support rural livelihoods.
The MGMM Outlook
India’s decision to maintain restrictions on genetically modified products and dairy import concessions reflects its commitment to protecting domestic farmers, dairy producers and rural livelihoods while expanding international trade opportunities. Commerce and Industry Minister Piyush Goyal’s statement reinforces the government’s position that trade agreements should not compromise sensitive agricultural sectors. With millions of households dependent on dairy farming and agriculture, safeguarding these industries remains important for economic stability, food standards and employment across the country.
At the same time, India is working to strengthen its position in global markets by securing better opportunities for domestic manufacturers, farmers, MSMEs and exporters through Free Trade Agreements. This balanced approach aims to encourage exports, attract investment and improve India's global competitiveness without exposing vulnerable sectors to unnecessary pressure. As India expands its international trade partnerships, protecting domestic interests while creating new economic opportunities will remain central to its trade strategy.
(Sources: Financial Express, Business Standard, The Indian Express)
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