India has drawn a firm red line in trade talks with the United States, refusing to allow dairy imports that do not meet its cultural and ethical standards. The government has confirmed that milk and dairy products derived from cattle fed on non-vegetarian feed — common in U.S. dairy practices — will not be permitted entry into the Indian market.

Minister of State for Fisheries, Animal Husbandry and Dairying S.P.S. Baghel emphasized that protecting the livelihoods of Indian farmers remains a top priority. “India’s national interest is our top priority. We are committed to safeguarding the livelihoods of our farmers, and their welfare will not be compromised,” he said, noting that dairy is a deeply sensitive sector tied to rural economies and cultural values.

A flashpoint in India-U.S. trade talks

The issue has become contentious in ongoing trade negotiations. Washington, backed by powerful American dairy lobbies, has long sought access to India’s 1.4 billion-strong consumer market. However, the Modi government has consistently resisted, citing both ethical objections and economic security for small-scale farmers.

Limited exports, but rising ambitions

While India is the world’s largest dairy producer, its exports remain modest due to the prevalence of Foot and Mouth Disease (FMD) among livestock. The government is working under the National Animal Disease Control Programme (NADCP) to eradicate FMD, a move expected to boost exports to premium markets in Southeast Asia, the Middle East, Africa, and beyond.

For now, dairy remains a “non-negotiable” sector in India’s trade policy, underscoring New Delhi’s commitment to cultural traditions and rural livelihoods, even under mounting U.S. tariff pressure.