India draws the red line on GM foods, dairy ahead of August trade talks with US
A senior government official said India's position on GM crops and dairy remains 'non-negotiable".
These two sectors have emerged as key points of contention ahead of the next round of face-to-face discussions between India and the US for a bilateral trade agreement. The discussions are scheduled to take place in New Delhi in the second week of August.
'The government has consistently maintained that GM food crops and dairy imports are not aligned with India's domestic priorities—be it on health, environment, or livelihood grounds," the official said, requesting anonymity. 'We are ready to explore other areas of convergence, but we cannot compromise on these issues."
The US has been pushing for greater market access for GM maize and soy-based products. Besides, the US's dairy industry has been lobbying for access to India's vast consumer market.
However, Indian policymakers have consistently resisted such proposals, citing concerns related to biosafety, political sensitivities, and potential disruption to millions of small-scale dairy farmers.
'Any import of dairy products from subsidized markets like the US could severely hurt India's rural economy and traditional milk cooperatives," this official added.
India has instead proposed mutually beneficial options, such as promoting value-added sectors, simplifying regulatory procedures, and offering tariff concessions in non-sensitive areas.
New Delhi is also seeking better access for Indian pharmaceuticals, textiles, and services to the US market.
A crucial stretch
India and the US pushed back their deadline to finalize abilateral trade agreement from the earlier 9 July cutoff to later in the month as US President Donald Trump, while announcing rates for some countries, decided to enforce his reciprocal tariffs from 1 August.
The trade deal is crucial for India as negotiators seek the elimination of the reciprocal tariffs and additional duties such as those on steel, aluminium, and auto components.
India recently withdrew quality control orders for three key industrial chemicals—acetic acid, methanol, and aniline—to ease compliance burdens on domestic manufacturers. India imports substantial quantities of acetic acid and aniline from the US and China.
The decision to withdraw the quality control orders is being viewed as New Delhi's gesture to address US concerns, especially after the Office of the US Trade Representative (USTR), in its 2025 National Trade Estimate Report released in March, flagged several trade barriers in India, including high tariffs, digital restrictions, and regulatory hurdles.
The USTR report specifically raised concerns over India's quality control orders, including one on polyethylene introduced in January 2024. The report said such measures did not align with international standards and disrupted trade in plastics and chemicals.
India, however, maintains such policies are essential to prevent the entry of substandard imports.
The US remains one of the few countries with which India maintains a strong merchandise trade surplus. In 2024-25, Indian exports to the US rose 11.6% to $86.51 billion, while imports grew 7.4% to $45.33 billion, pushing the surplus to $41.18 billion.
India opens up autos, services, liquor to UK; gains access in goods
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