India sticks to dairy, MSME safeguards in NZ trade talks

In a clear signal to the dairy sector, India’s Commerce and Industry Minister Piyush Goyal said that the country will not compromise on the interests of its dairy farmers and MSMEs while negotiating trade agreements — following his meeting with New Zealand Prime Minister Christopher Luxon and counterpart Todd McClay.

India and New Zealand are in advanced talks for a bilateral free-trade agreement (FTA), yet dairy remains a politically sensitive sector for the Indian side. Goyal emphasised that trade negotiations must reflect “the size and scale of each country”, and cannot blindly adopt standards used with large economies.

For India’s vast cooperative dairy sector — involving millions of small and marginal farmers — the announcement is a major reassurance. The minister reaffirmed that “India never compromises on the interests of dairy, farmers and MSMEs.”

He also pointed out that bilateral cooperation with New Zealand could focus on dairy-machinery, automation and “mini-dairy” units, rather than full market liberalisation of export-facing dairy commodities.

Implications for Indian dairy value-chain:

• The statement reinforces India’s intent to protect milk-producer margins, plant investment and local processing capacity in any FTA.

• It may influence the packaging of upcoming export-oriented schemes (e.g., for dairy SMEs or new product development) by emphasising “value addition” over raw commodity export.

• Machinery and automation firms (such as your engineering company) could find opportunity in the “mini dairy” cooperation line, which aligns with upgraded processing & automation focus.

• For your weekly India–Africa dairy-exports brief: India’s export posture now seems to emphasise “domestic producer protection + selective value-added export” rather than broad liberalization.

Overall, while the India–New Zealand FTA talks continue, dairy stakeholders can view this as a commitment to ensure that India’s dairy ecosystem—from village cooperatives to plant automation—remains safeguarded in global trade strategy.

Source : DAirynews7x7 Nov 7th 2025 ET