GM Products and Dairy Stay Out of India's Trade Deals: What the Rules Say and Why
The Union Ministry of Commerce and Industry restated that India has never allowed the import of genetically modified (GM) products under its trade agreements, and that it will not open its dairy sector to foreign competition.
The Ministry said India protects its farmers, fishermen and MSMEs (Micro, Small and Medium Enterprises) in every trade pact and has not compromised on any "sensitive" item.
The statement was made at a talk for college students in Delhi, at a time when India is negotiating or carrying out several trade deals, including the India-US interim trade framework (announced in February 2026).
India has not given any duty concession (a cut in import tax) on dairy in any of its Free Trade Agreements so far, including those with the UK, Australia, New Zealand and the EU.
The question of GM imports matters because some processed products made from GM crops (such as soybean oil) have been discussed in trade talks. Critics argue that such products do enter India, while the government says no GM farm produce is allowed under the deals.
Genetically Modified (GM) Crops: Regulation in India and the GEAC
A genetically modified (GM) crop is a plant whose DNA (the set of instructions inside every cell) has been changed in a laboratory, usually by adding a gene taken from another living thing. This new gene gives the plant a new quality, such as killing a pest or surviving a weedkiller. In India, GM crops are tightly controlled. Only one GM crop, Bt cotton, is approved for commercial farming, and every GM seed, food or import needs approval from government committees, mainly the Genetic Engineering Appraisal Committee (GEAC).
When the government says India has never allowed GM imports in trade deals, it is relying on this framework: no GM grain or seed can enter or be grown without GEAC and FSSAI approval, and only Bt cotton is approved for farming. Processed products like refined GM soybean oil are treated differently because they are not living organisms, which is why the debate over what counts as a "GM import" keeps returning in trade talks.
Sensitive Sector Protection in Trade Agreements
When two countries sign a trade deal, they do not cut import taxes on every product. Each country keeps a list of products where it does not cut taxes at all, or cuts them only a little. These are called sensitive sectors, and they are usually products where millions of small producers could be hurt by cheap imports. For India, the most important sensitive sector is dairy, followed by farm items like rice, wheat and sugar.
The Ministry's statement that India will never open its dairy sector is the clearest example of a sensitive-sector "red line". Along with GM products, dairy is kept on India's exclusion list so that trade deals do not hurt small farmers and fishers.
- India has given no duty concession on dairy in any FTA so far (including UK, Australia, New Zealand and EU)
- India-US interim trade framework: announced February 2026
- India's milk production: about 247.87 million tonnes (2024-25), the largest in the world
- India's only commercial GM crop: Bt cotton (approved 2002)
- GM regulator: GEAC under MoEFCC; legal basis: Rules, 1989 under the Environment (Protection) Act, 1986
- GM food approval: Section 22, Food Safety and Standards Act, 2006
- Non-GM certificate for 24 imported food crops since 1 March 2021, 1% tolerance
- India walked out of RCEP on 4 November 2019