Commerce Minister reiterates India’s position on dairy-sector market access and genetically modified imports amid ongoing trade negotiations with the United States.
India will not permit imports of genetically modified (GM) products or dairy products manufactured using calf meat, Commerce and Industry Minister Piyush Goyal has said, reiterating the government’s position on food imports amid ongoing trade negotiations with the United States.
Speaking to students at Kirori Mal College on Tuesday, Goyal said India remained sensitive about opening its dairy sector to foreign competition and would continue to require strict certification for imported dairy products to address domestic regulatory and religious concerns.
“We are very sensitive to the opening of the dairy sector. Till date we have never opened the dairy sector for anybody,” Goyal said, adding that India would not allow GM products or dairy products involving the use of calf meat in production.
He also referred to the use of animal-derived rennet in cheese manufacturing in some countries and said imported products would need to meet India’s certification requirements.
US raises concerns over India’s dairy import requirements
Goyal’s remarks come amid negotiations on a proposed India-US trade agreement, with the United States seeking greater access to India’s dairy market and exports of certain genetically modified products.
The United States Trade Representative (USTR), in its March 2025 report on foreign trade barriers, described India’s dairy import requirements as restrictive and questioned their scientific justification.
The report highlighted Indian requirements under which dairy products intended for human consumption must be derived from animals that have not consumed feed containing internal organs, blood meal or tissues of ruminant or porcine origin. Exporting countries are also required to certify compliance with these conditions.
The USTR argued that these requirements, alongside dairy health certificates, facility registration requirements and high tariffs, limit market access for US dairy exporters.
It also stated that the US government had continued to press India through bilateral trade discussions, including the Trade Policy Forum, for greater access to the Indian dairy market.
India’s position, as outlined by Goyal, reflects the government’s continued emphasis on domestic sensitivities and certification requirements in determining the conditions under which foreign dairy products can enter the country.
Animal-derived rennet and dairy import certification
The use of animal-derived rennet is an important consideration in international dairy trade, particularly in cheese manufacturing. Rennet contains enzymes used to coagulate milk during cheese production and can be obtained from different sources, including animal, microbial and fermentation-derived sources.
Goyal’s remarks underline the importance of certification concerning the production methods and ingredients used in imported dairy products.
For international suppliers, compliance with India’s applicable import conditions and documentation requirements will remain important for accessing the domestic market.
India signals domestic manufacturing push for tunnel boring machines
Separately, Goyal said India would pursue domestic manufacturing of tunnel boring machines (TBMs) if China restricts their exports.
Also Read: India’s Average Daily Milk Yield Rises to 8 Litres per Animal from Below 5 Litres in FY14: PM Modi
His remarks followed China’s announcement that export operators would need to obtain licences under its export-control framework for specified items, with the restrictions scheduled to take effect from November 18.
Goyal said India would seek to develop the required technology and manufacturing capabilities domestically rather than rely entirely on imports. He also referred to the development of rare-earth-based motors by Indian start-ups following earlier Chinese export restrictions.
TBMs critical to major infrastructure projects
Tunnel boring machines are used for underground excavation in major infrastructure projects, including rail, metro, road and utility tunnels.
They are particularly important for the 508-km Mumbai–Ahmedabad High-Speed Rail Corridor, which includes a proposed 7-km undersea rail tunnel.
TBMs enable controlled excavation and can reduce some of the safety and surface-disruption risks associated with conventional tunnelling methods, particularly in densely populated areas.
India’s efforts to strengthen domestic TBM manufacturing would therefore have implications for its infrastructure development plans as well as its broader strategy to reduce dependence on critical imported equipment.
Trade negotiations highlight India’s regulatory priorities
Goyal’s comments bring two important areas of India’s trade policy into focus: maintaining domestic regulatory conditions for sensitive food imports and developing domestic capabilities in strategically important industrial technologies.
For the dairy sector, the outcome of India-US trade negotiations could have implications for market access, import certification, product eligibility and competition with domestic processors.
The government’s position, as stated by the minister, indicates that any expansion of dairy trade will continue to be shaped by India’s food-import requirements and domestic sensitivities.
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