India Firm on Dairy: Why FTA Talks Exclude Key Sector for Livelihoods & Food Security

• India's dairy sector is non-negotiable in trade talks, including the recent FTA with New Zealand, due to its critical role in livelihoods and food security.
• Over 80 million Indian households, primarily small-scale producers, depend on dairy for income, making it a vital social infrastructure and protein source.
• Liberalisation would lead to massive welfare reduction as there's no feasible mechanism to compensate millions of small, labour-intensive dairy producers for price shocks.
• India's dairy sector is structurally different from advanced economies' agribusiness model, focusing on domestic consumption and fragmented production for risk mitigation.
• The India-New Zealand FTA offers duty-free access for dairy inputs for re-export and regulatory pathways, providing functional access without disrupting smallholders.

Why It Matters: India prioritizes rural stability and nutritional security by protecting its dairy sector in trade agreements.