For India&rsquo;s dairy farmers, the cow is not just livestock, it is livelihood, security, and survival. That reality was underlined sharply this week when Commerce Minister Piyush Goyal made it clear that India will&nbsp;never open its dairy sector to free trade, even as New Delhi pushes ahead with major global trade deals.
The statement came soon after India wrapped up a free trade agreement with New Zealand, a country known for its powerful dairy exports. Yet despite pressure, India refused to lower duties or offer market access in dairy, a decision rooted far from negotiating tables and deep in India&rsquo;s villages.
Across the country, over 80 million households depend on dairy income, most of them small and marginal farmers owning two or three cattle. Unlike large industrial farms abroad, Indian dairy runs on thin margins. Opening the sector to cheaper imports could wipe out incomes overnight.
While dairy remains off-limits, the India&ndash;New Zealand trade pact opens significant opportunities elsewhere. Indian textiles, footwear, marine products, engineering goods and automobiles will get duty-free access. New Zealand, in turn, has committed to long-term investments and easier mobility for Indian professionals, students and skilled workers.
Trade talks with the United States are also moving forward, but dairy and agriculture remain the biggest hurdles. India&rsquo;s position is clear: global integration cannot come at the cost of rural livelihoods.
For the common farmer, this stance offers reassurance, that even as India signs big trade deals and opens new markets, some red lines remain firmly drawn.

India Keeps Dairy Sector Out of Free Trade Deals

As free trade expands, Delhi draws a hard line to protect millions of small dairy farmers

India Keeps Dairy Sector Out of Free Trade Deals

As free trade expands, Delhi draws a hard line to protect millions of small dairy farmers

December 22, 2025 | 15:57 IST