India has not given any import duty concessions in its dairy sector for New Zealand under the bilateral free trade agreement, an official said on Monday (December 22, 2025).

Both sides announced the conclusion of negotiations for the free trade agreement.

“The dairy sector is completely a red line for us. No duty concessions under the pact in the sector,” the official said.

India has always resisted opening the door to bulk dairy imports in all of its previous pacts.

Dairy has long been the most sensitive, and politically charged issue in the negotiations.

New Zealand is one of the world’s largest dairy exporters, while India is home to millions of small dairy farmers for whom market protection is a red-line issue. In practice, however, current trade is minimal.

New Zealand’s dairy exports to India in FY2025 totaled just $1.07 million, consisting of milk and cream ($0.40 million), natural honey ($0.32 million), mozzarella cheese ($0.18 million), butter ($0.09 million) and skimmed milk ($0.08 million).