India will never open up dairy sector: Commerce Minister on New Zealand FTA

Commerce Minister Piyush Goyal said India has protected dairy and key farm sectors in the India-New Zealand FTA, underlining that dairy will never be opened up in trade negotiations

India will never open up its dairy sector, Union Commerce and Industry Minister Piyush Goyal said on Monday, while highlighting the details of the India–New Zealand Free Trade Agreement (FTA).

 

During a media briefing, the minister said, "We have been very sensitive to protect all the sectors, like farmers' interest in rice, wheat, dairy, soya and various other farmer products, agricultural products, which have not been opened up with any access. We have also been very conscious of ensuring that our MSMEs and our startup innovators get big opportunities in New Zealand."

 

On Monday, India and New Zealand announced the finalising of the FTA. The deal provides India with duty-free access to New Zealand's market, while Wellington gains a reduction of tariffs on 95 per cent of its exports.

 

The deal, however, excludes access to India’s politically and economically sensitive dairy sector and some farm products, reflecting New Delhi’s hard line on these areas.

 

Dairy and agriculture have also been a major contention in the long-awaited India-US trade deal, with Washington seeking greater access in the Indian markets. Goyal, however, said that discussions for the same are in an "advanced stage".

 

Last week, Commerce Secretary Rajesh Agrawal also said a framework trade agreement between India and the US will be finalised "soon".

 

Low-quality deal: NZ's foreign minister

While New Zealand’s Prime Minister Christopher Luxon hailed the FTA as a boost for “Kiwi jobs”, Foreign Affairs Minister Winston Peters called it a “low-quality” deal and said his party would oppose the agreement. Peters is the leader of the New Zealand First party, which is a part of the ruling right-wing coalition government led by Luxon's National Party.

 

"We consider the India-New Zealand Free Trade Agreement to be neither free nor fair. Regrettably, this is a bad deal for New Zealand. It gives too much away, especially on immigration, and does not get enough in return for New Zealanders, including on dairy," Peters said.

 

"The India FTA would be New Zealand’s first trade deal to exclude our major dairy products – including milk, cheese and butter. In the year to November 2025, New Zealand exports of these products were worth around $24 billion, or 30 per cent of our total goods exports," he added.

 

The deal now awaits parliamentary approval in New Zealand. Peters also said his party, which has eight MPs in the 123-member House of Representatives, will vote against it when it is introduced.

 

He, however, added that New Zealand First's opposition to the deal is not a critique of the Government of India or its negotiators – but rather the reflection of a difference of opinion between the parties that comprise New Zealand’s coalition government.