The core of this protectionist stance lies in the unique structure of India’s dairy economy, which provides a vital safety net for approximately 80 million small and marginal farmers. Unlike the industrial-scale operations found in New Zealand, the Indian model relies on millions of families who depend on just a few cows or buffaloes for their daily income. Minister Goyal highlighted that any influx of low-cost dairy imports would jeopardize the financial security of these rural populations, making the sector’s exclusion from trade deals a matter of social and economic stability.

Despite the firm stance on market access, the new agreement between India and New Zealand seeks to foster a relationship based on technical exchange rather than commodity trade. New Zealand, recognized for its advanced dairy technology and high productivity, will collaborate with India to improve local yields and processing efficiencies. This strategic partnership aims to modernize the Indian dairy landscape from within, leveraging global expertise to strengthen domestic production without exposing local farmers to the volatility of international market prices.

The minister also pointed out the significant disparity in scale and export orientation between the two nations. While New Zealand is the world’s largest dairy exporter, India is the world’s largest producer and consumer, utilizing almost all its output internally. By maintaining high tariffs and strict import controls, the Indian government seeks to ensure that the “White Revolution” continues to empower its citizens, fostering self-sufficiency in a region where dairy is a primary source of protein and nutrition.