New Delhi: The proposed India–New Zealand Free Trade Agreement (FTA) is expected to support India’s dairy sector through enhanced agricultural technology cooperation, while safeguarding the country’s cooperative dairy structure, the Ministry of External Affairs (MEA) has said.
Speaking during a special media briefing on Prime Minister Narendra Modi’s official visit to New Zealand, Rudrendra Tandon, Secretary (East), MEA, described dairy as a “sensitive sector” for India due to its unique cooperative-based production system that supports millions of small and marginal farmers.
“Dairy is a very sensitive sector in India because of the unique structure of our agriculture sector. We do not have large commercial dairies. Our dairy industry is based on the cooperative model, which serves as an important source of regular income for small and marginal farmers,” Tandon said.
He clarified that while dairy market access remains a sensitive issue, India and New Zealand have agreed to strengthen collaboration through an Agricultural Productivity Arrangement, which will focus on the adoption of advanced agricultural technologies rather than changes in the domestic dairy market structure.
According to the MEA, New Zealand’s expertise in agricultural technology, precision farming, livestock management, and dairy productivity can support India’s efforts to modernise its agriculture sector and improve farm incomes.
Tandon noted that technology adoption remains a key component of the Government of India’s strategy to commercialise agriculture, improve productivity, and enhance farmers’ earnings. The partnership is expected to facilitate knowledge sharing and the transfer of best practices that can benefit India’s dairy industry without compromising the interests of cooperative milk producers.
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Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon also reaffirmed the importance of the proposed FTA in strengthening bilateral economic ties. According to the Ministry of External Affairs, both leaders recognised that the agreement would promote trade, encourage investment, and expand cooperation across sectors including agriculture, innovation, skills, clean energy, sports, and technology.
The leaders also noted that New Zealand’s expertise in advanced agricultural systems could contribute to India’s Viksit Bharat 2047 vision by supporting productivity improvements and sustainable agricultural development.
Industry Perspective
The emphasis on agri-tech cooperation rather than dairy market liberalisation reflects India’s longstanding approach of protecting its cooperative dairy ecosystem while leveraging global expertise to improve productivity. Industry experts believe that collaboration in areas such as genetics, precision livestock farming, animal nutrition, digital agriculture, and sustainable dairy practices could help strengthen India’s dairy value chain without affecting the livelihoods of millions of smallholder dairy farmers.
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