India Stands Firm on Dairy in EU FTA Talks
India and the European Union are holding their 13th round of Free Trade Agreement (FTA) negotiations in New Delhi, with discussions expected to run through mid-September. The government has made it clear that while it is committed to concluding the deal, it will not compromise on sensitive sectors like dairy and agriculture. Commerce Minister Piyush Goyal emphasized that India seeks “balance over speed,” prioritizing a fair and sustainable agreement rather than rushing to closure.
Around 60–65% of the FTA chapters have already been finalized, but key issues remain on tariffs, market access, and regulatory standards. For India, safeguarding domestic farmers and ensuring rural livelihoods are non-negotiable priorities. The EU, meanwhile, is seeking deeper access to India’s fast-growing market, including in processed foods and dairy products, which India has so far resisted.
Industry Insights
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Dairy & Agriculture Protection: India’s stance reassures its 8 crore dairy farmers and millions of smallholders that their livelihoods remain central to trade policy. Conceding tariff cuts could expose domestic markets to cheaper imports, threatening the cooperative dairy model.
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Negotiation Strategy: By taking a patient, chapter-by-chapter approach, India is signaling that FTAs must serve both growth and food security goals. This positions India as a cautious but confident player in global trade.
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Opportunity Ahead: A well-crafted FTA could boost Indian agri-exports (spices, basmati rice, processed foods) to the EU, while protecting sensitive sectors. This would create a win-win: opening new markets while sustaining the rural economy.
Source : Dairynews7x7 Sep 12th 2025