India Will Not Allow GM Products or Non-Vegetarian Dairy Imports, Says Piyush Goyal

Commerce Minister Piyush Goyal says India will protect sensitive sectors, including dairy and agriculture, during trade negotiations while targeting $1 trillion in exports in FY27.

India-US Trade Deal: Piyush Goyal Rules Out GM Products and Non-Vegetarian Dairy Imports

India will continue protecting sensitive sectors such as dairy, marine products and genetically modified (GM) products in its Free Trade Agreements (FTAs), Commerce and Industry Minister Piyush Goyal has said. Ahead of the proposed India-US trade agreement, the minister made it clear that the government would not compromise on issues involving domestic farmers, fishermen and micro, small and medium enterprises (MSMEs).

Speaking at the Young Leaders Discourse Forum at Kirori Mal College, Delhi University, Goyal highlighted India's trade priorities, export potential and efforts to secure better international market access for domestic industries.

India Will Not Open Sensitive Sectors in Trade Agreements

Piyush Goyal said India has maintained safeguards for sensitive sectors while negotiating its existing FTAs and intends to follow the same approach in future agreements.

He specifically referred to marine products, dairy and GM products, explaining that these areas involve important domestic economic and social considerations.

The minister emphasised that trade negotiations are not simply about increasing imports and exports. They also require protecting industries and communities that could be affected by international competition.

According to Goyal, the government is committed to ensuring that the interests of Indian farmers, fishermen and MSMEs remain protected while expanding opportunities for domestic businesses.

Why India Is Protecting Dairy and GM Products

Explaining India's position on dairy imports, Goyal highlighted the religious and cultural sensitivities associated with certain international dairy production practices.

He noted that dairy industries in several countries use animal-derived ingredients, including calf-derived rennet, during cheese production. Certain international cattle-feed practices also involve animal-derived supplements.

Such practices raise concerns in India because millions of people follow vegetarian dietary traditions and have specific religious beliefs regarding animal-derived ingredients.

The government therefore considers dairy and related products sensitive areas in trade negotiations.

India has also maintained its cautious position on GM products, reflecting concerns surrounding domestic agriculture and the interests of Indian farmers.

India Seeks Better Export Opportunities Across Key Industries

While protecting sensitive sectors, India is actively working to secure preferential market access for its export-oriented industries.

Goyal identified several sectors that offer significant opportunities for Indian businesses in international markets.

These include:

• Processed food products: Expanding exports through value addition, branding and improved international market access.

• Agriculture and horticulture: Increasing overseas sales of Indian agricultural products.

• Textiles and apparel: Strengthening competitiveness against exporters from countries such as Malaysia, Indonesia and China.

• Leather and footwear: Creating additional opportunities for domestic manufacturers.

• Pharmaceuticals: Expanding India's presence in international medicine markets.

• Gems and jewellery: Improving export opportunities for Indian manufacturers and traders.

The government is working to secure favourable trade conditions for these sectors to help Indian exporters compete more effectively with international rivals.

India Targets $1 Trillion in Exports in FY27

Goyal highlighted India's strong export ambitions and outlined the government's target of achieving $1 trillion in exports during FY27.

According to the minister, India's exports reached nearly $480 billion between April and September 2026. The country is targeting more than $520 billion in exports during the second half of the financial year to achieve its annual goal.

He also mentioned that India recorded encouraging export performance in October 2026.

Achieving the target will require sustained growth across merchandise and services exports, supported by stronger international partnerships, improved market access and greater participation from Indian businesses.

Agriculture Exports Offer Huge Value-Addition Potential

The minister pointed out that India's existing agricultural exports, valued at approximately Rs 5 lakh crore, provide substantial opportunities for expanding processed food exports.

He stressed the importance of moving beyond the export of basic agricultural commodities towards value-added products with stronger branding and higher international realisations.

Processing, packaging and branding could help Indian producers earn better returns while creating opportunities for food-processing companies, farmers and exporters.

This approach could also strengthen India's position in global food supply chains.

Defence and Space Emerging as Important Export Sectors

Goyal identified space technology and defence manufacturing as two important areas with considerable export potential.

India's growing capabilities in these sectors could help domestic companies expand their international presence and develop partnerships with overseas markets.

The government's broader focus on domestic manufacturing and technological development is expected to support these industries in becoming important contributors to India's export growth.

India Focuses on Domestic Manufacturing and Supply Chain Security

Commenting on India's trade relationship with China, Goyal said bilateral relations could improve if no fresh obstacles emerge.

He also emphasised the importance of developing domestic manufacturing capabilities when access to critical equipment or materials becomes restricted.

Referring to tunnel boring machines and rare earth supplies, the minister said India would work towards developing domestic alternatives rather than depending entirely on foreign suppliers.

His remarks highlighted India's focus on supply-chain resilience, technological self-reliance and reducing vulnerabilities arising from international trade restrictions.

Tourism and Startup Funding Remain Government Priorities

Addressing questions about tourism growth, Goyal said the government was working with aircraft manufacturers, including Embraer, Airbus and Boeing, to improve aircraft availability.

Greater availability of aircraft could support aviation connectivity and help India's tourism sector accommodate increasing travel demand.

The minister also discussed funding support for startups through Fund of Funds 2.0. He said commitments worth more than Rs 3,000 crore had already been made under the initiative.

He assured that the government would continue supporting startups, particularly those operating in Tier-2 and Tier-3 cities.

Conclusion

India's approach to international trade negotiations reflects its effort to balance export expansion with domestic economic and cultural priorities. Piyush Goyal's remarks underline the government's commitment to protecting dairy, agriculture and other sensitive sectors while pursuing the $1 trillion export target for FY27. Greater market access, value-added exports, domestic manufacturing and startup funding are expected to remain important parts of India's broader trade strategy.