The Commerce Department has clarified that under the newly signed India-EU Free Trade Agreement (FTA), the dairy sector and sensitive farm products will remain fully protected. While the pact opens new opportunities for trade and investment, it safeguards India’s agricultural backbone, ensuring farmers’ livelihoods and food security are not compromised.
The India-EU Free Trade Agreement (FTA) has sparked discussions across industries, but the Commerce Department has assured that India’s dairy sector and sensitive agricultural products will remain outside the ambit of tariff reductions. This move is aimed at protecting millions of farmers and ensuring that domestic producers are not adversely impacted by European imports.
Officials emphasized that while the FTA will enhance cooperation in areas such as technology, manufacturing, and services, agriculture remains a sensitive domain. By excluding dairy and key farm products, India has struck a balance between economic liberalization and safeguarding rural livelihoods.
Experts believe this protection will help maintain food security, price stability, and farmer confidence, while still allowing India to benefit from expanded trade opportunities with the EU.
Key Highlights / Major Takeaways
Dairy sector and sensitive farm products excluded from tariff cuts in India-EU FTA
Move ensures farmer protection and food security
FTA focuses on technology, manufacturing, and services cooperation
Balance achieved between trade liberalization and rural livelihood safeguards
Strengthens India’s negotiating stance in global trade agreements
Sources: Economic Times, Business Standard, The Hindu Business Line