The resistance to GM crop imports, particularly corn and soybeans, stems from concerns over potential competition with domestic production and the broader implications for India’s agricultural ecosystem. India currently permits the cultivation of only one GM crop, Bt cotton, and maintains strict regulations against GM food crops. Experts and farmer organizations fear that allowing GM imports could disrupt local farming systems, compromise food safety, and negatively impact India’s export reputation, especially in GM-sensitive markets like the EU.

Similarly, India’s dairy sector remains a highly sensitive area, providing livelihoods for over 80 million smallholder dairy farmers. Allowing the import of U.S. dairy products could lead to a significant drop in domestic milk prices, potentially causing substantial financial losses for these farmers. Furthermore, cultural and religious sentiments in India also play a role, with concerns about the U.S. practice of feeding cattle with animal by-products, which violates local norms and safety perceptions.

The ongoing discussions are taking place against a backdrop of pressure from the U.S. for greater market access in agriculture and dairy, and a looming deadline for reciprocal tariffs if a deal is not reached. However, India’s trade negotiators are prioritizing the long-term interests of its rural citizens and national food security over short-term trade concessions. This highlights a fundamental difference in trade philosophies between the two nations.