The primary sticking point revolves around India’s unwillingness to permit U.S. imports of genetically modified (GM) soybean or corn. This stance reflects India’s cautious approach to biotechnology in agriculture and its commitment to protecting its domestic seed and farming sectors from potential impacts of GM crops. Such policies create significant non-tariff barriers for U.S. agricultural exports.

Furthermore, India has explicitly refused to open its dairy sector to U.S. products. This position is largely influenced by India’s vast domestic dairy industry, which provides livelihoods for millions of small-scale farmers and is deeply intertwined with cultural and economic sensitivities. This protectionist stance on dairy imports is a major hurdle for U.S. dairy producers seeking new market access.

These unresolved issues—the resistance to GM crop imports and the protection of the dairy sector—are cited as the primary reasons why a comprehensive bilateral trade agreement between India and the United States has not yet been finalized. Despite persistent efforts from both sides to bridge differences, these agricultural tensions remain a formidable obstacle to broader trade liberalization.