India plans to use World Trade Organisation (WTO)-compliant non-tariff barriers (NTBs) to shield its dairy sector from U.S. market access as part of ongoing bilateral trade negotiations, a senior government official said. The talks aim to boost two-way trade to USD 500 billion by 2030.
“Some items like dairy will be caught in NTBs for India,” the official told Moneycontrol, noting that the customs and commerce ministries are working to ensure sensitive sectors such as dairy and agriculture remain protected.
India hopes to exclude dairy from the trade deal by invoking food safety and cultural standards. A major concern is the possibility of U.S. dairy cattle being fed animal-derived feed, which goes against Indian religious and cultural practices.
“This gives India a legitimate ground to keep dairy out of the agreement, while still offering concessions in other areas,” the official added.
India’s dairy policy has long included certification requirements ensuring imported dairy originates from vegetarian-fed animals. Such NTBs, when based on public health or cultural concerns, are WTO-compliant.
India has maintained a similar stance in trade talks with Australia and the European Union, resisting pressure to open its dairy market to products like cheese and skimmed milk powder.
Despite being the world’s top milk producer, India’s share in global dairy exports is just 0.25 per cent. In FY23, India exported over Rs 2,200 crore worth of dairy products, with minimal shipments to the U.S.
By embedding NTBs into its trade framework, India seeks to protect domestic standards without violating global trade rules.
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