India Firm on Dairy: No Concessions in New Zealand FTA, US Deal Still Stuck

• India refused to grant import duty concessions on dairy products in the Free Trade Agreement (FTA) with New Zealand, considering it a 'red line'.
• This stance mirrors the unresolved issue with the US trade deal, which is stalled over American demands for dairy market access in India.
• India prioritizes its millions of small dairy farmers, making the dairy sector a highly sensitive and politically important issue.
• Despite New Zealand being a major dairy exporter, current dairy trade with India is minimal, totaling only 1.07 million USD in FY2025.
• The India-New Zealand FTA, finalized after a 10-year stall, could make goods like timber, furniture, and paper cheaper in India by reducing import duties on raw materials.

Why It Matters: India firmly protects its dairy sector, refusing market access in trade deals with US and New Zealand.