Union Commerce and Industry Minister Piyush Goyal addresses a press conference at Vanijya Bhawan, outlining developments on India’s proposed trade agreements and other commerce-related initiatives, in New Delhi.
| Photo Credit:
ARUN SHARMA
India will never open up its dairy sector and has ensured its protection in the India-New Zealand free trade agreement (FTA) concluded on Monday, Commerce & Industry Minister Piyush Goyal has said.
“We have protected all our sensitivities, like farmers interest in rice, wheat, dairy, soya, and various other farm products, where we have not given any access. We have also been conscious of protecting our MSMEs and startups and innovators get big opportunities in New Zealand. It is a win-win..,” Commerce & Industry Minister Piyush Goyal said at a media briefing on Monday.
When asked about the side letter on `consultations related to dairy sector in review of FTA’, the Minister said it was to take care of New Zealand’s concerns that in case India ever gave dairy concessions to a country with a comparable economy (to that of New Zealand), it, too, should get an opportunity to discuss similar benefits.
“India is never going to open up dairy so that concern does not really matter. And it is only a consultation,” Goyal said.
On dairy, the agreement includes a commitment to implement a dedicated fast-track mechanism to facilitate the supply of New Zealand products duty-free to India for further manufacturing and export, according to New Zealand Trade Minister Todd McClay.
Duty-free access
“New Zealand exporters will enjoy duty-free access for dairy and other food ingredients for re-export through the FTA, opening the door to greater collaboration and processing, and offer access to India’s growing number of FTA partners through a dedicated fast-track mechanism,” McClay said in a statement.
The New Zealand Minister also pointed out that India will provide duty-free access for bulk infant formula and other high-value dairy preparations over seven years and a 50 per cent tariff cut for high value milk albumins within a NZ-specific quota equal to current export volumes.
Delhi has excluded 30 per cent of its tariff lines from reduction commitments which includes dairy such as milk, cream, whey, yoghurt and cheese, animal products (other than sheep meat), vegetable products such as onions, chana, peas, corn and almonds, sugar, artificial honey and Animal, vegetable or microbial fats and oils.
Other shielded items are arms and ammunition, gems and jewellery, copper and articles (Cathodes, Cartridges, Rods, Bars, Coils etc.) and aluminium and articles.
Published on December 22, 2025