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India remains firm in rejecting US dairy imports over concerns that milk from American cows, often fed animal-based products like blood and meat, violates deep-rooted cultural and religious norms. While this practice is common in the US, Indian dairy systems predominantly follow a vegetarian feeding regime, especially given the widespread ritual use of milk and ghee in religious ceremonies.
The Indian government has set strict standards requiring that imported dairy products be certified as vegetarian-fed. The US, however, views these requirements as trade barriers and has raised objections at international forums like the World Trade Organisation (WTO). Tensions have escalated as both nations hold firm: India sees the matter as non-negotiable, while the US is pushing for greater market access.
Opening up India’s dairy market to the US could have significant economic repercussions. As the world’s largest producer and consumer of milk, India’s domestic sector is highly sensitive to pricing and supply dynamics. Cheaper US imports could undercut local producers, triggering a fall in prices and severely affecting farmers' livelihoods.
Analysts warn that allowing US dairy products could cost India over ₹1 lakh crore annually. With the sector contributing up to 3% of the national Gross Value Added (GVA), the stakes are not only cultural but critically economic.