Commerce and Industry Minister Piyush Goyal has drawn a firm line regarding India's trade policy, unequivocally stating that genetically modified (GM) products will never be allowed into the country. He also affirmed that India's sensitive dairy sector would remain closed under free trade agreements, prioritizing the interests of domestic farmers.
Speaking at Kirori Mal College in Delhi, Goyal underscored India's consistent approach to safeguarding its agricultural sectors, including farmers, fishermen, and micro, small, and medium enterprises (MSMEs), during international trade negotiations. He highlighted the government's unwavering commitment to these protective measures.
Protecting Dairy and Religious Sensitivities
Goyal elaborated on India's cautious stance on dairy imports, explaining that the government also considers religious sensitivities associated with production practices in other countries. "We are sensitive to our religious sensitivities," Goyal stated. He pointed out that many foreign countries use calf meat or rennet—an enzyme traditionally derived from young calf stomachs—in their dairy production, which is prohibited in India unless strictly certified to meet religious guidelines.
This protective approach has been evident in India's recent trade agreements. For instance, in negotiations with the European Union (concluded January 2026) and New Zealand (effective October), India ensured that sensitive agricultural sectors, particularly dairy, were shielded from foreign competition. Similar strategies were employed in deals with Australia and the UK, where while some agricultural and processed food products were allowed on easier terms, key sectors like cereals, poultry, and dairy remained protected.
India's Offensive Trade Interests
While maintaining strong safeguards for sensitive domestic sectors, Goyal emphasized India's proactive efforts to secure preferential market access for its competitive industries. These "offensive interests" include textiles, pharmaceuticals, certain agricultural products, and gems and jewellery.
"Our effort is how do we get India a preferential rate over our competitors," Goyal explained, referring to nations like Indonesia, Malaysia, Vietnam, China, and the Philippines. The minister reiterated that the overarching objective of India's trade agreements is to unlock new opportunities and generate employment for Indian businesses, farmers, and workers, fostering broad-based economic benefit across the country.