The policy reflects the government’s priority to safeguard millions of small-scale dairy farmers who form the backbone of the country’s milk production system. Officials argue that opening the sector to global competition could disrupt rural livelihoods and destabilize a highly decentralized production structure.

India’s stance comes amid ongoing and prospective trade negotiations with multiple global partners. While other sectors may see tariff flexibility, dairy remains a sensitive category, with policymakers consistently resisting pressure to liberalize imports of milk powder, cheese, and other dairy products.

From a global dairy trade perspective, this position limits export opportunities for major dairy-producing nations seeking access to India’s vast consumer market. At the same time, it reinforces India’s focus on self-sufficiency and domestic value chain development within its dairy economy.