India Unlikely to Yield on GM Imports in US Trade Deal Talks

As India and the United States continue discussions on a bilateral trade deal, a key flashpoint has emerged once again — genetically modified (GM) agricultural imports. Sources close to the negotiations have confirmed that India remains steadfast in its opposition to importing GM food crops, despite mounting pressure from the US.

“Some things are matters of principle. We can’t import GM,” said a source familiar with the government’s position, underlining the strong resistance within Indian policy circles.

The United States Trade Representative (USTR) has frequently expressed frustration over India's slow and often opaque biotechnology approvals, which it claims disregard the science-based frameworks of exporting countries. According to a 2024 USTR report, India’s Food Safety and Standards Authority (FSSAI) had still not finalised its regulatory framework for genetically engineered (GE) food products, despite the Food Safety and Standards Act of 2006 outlining provisions for such regulation.

India’s hesitance is grounded not only in regulatory inertia but also in broader socio-environmental and economic concerns. The country has approved only one GM crop, Bt cotton, for commercial cultivation. No GM food crop has received such clearance. Although imports of certain GM oils, such as soybean and canola, are permitted, India has avoided opening its doors to other genetically modified food items, including corn and soybeans, which are staple exports for the United States.

The resistance stems from multiple layers of concern. For one, Indian farmers typically work on small landholdings and lack the technological and financial buffers available to large-scale American agribusinesses. Introducing GM crops into this delicate ecosystem could widen existing inequalities, raise seed costs, and pose ecological threats.

Moreover, India’s agri-export market could suffer if GM imports lead to contamination of supply chains. A recent report by the New Delhi-based think tank Global Trade Research Initiative (GTRI) pointed out that GM and non-GM crops often intermingle during transportation, storage, or processing. “Once GM material enters, there is a high risk it could leak into local farming systems or processed food chains,” the GTRI warned. This raises serious concerns for India's export-oriented agricultural sectors, such as rice, honey, tea, spices, and organic foods, many of which are sold in GM-sensitive markets like the European Union.

The EU’s strict labelling rules and consumer aversion to GM products mean that even trace contamination can result in shipment rejections, expensive testing requirements, and reputational damage. India's fragmented agri-logistics network and lack of segregation infrastructure make such cross-contamination more likely.

Environmental concerns also loom large in the policy debate. The GTRI highlighted that herbicide-tolerant GM crops, which rely heavily on glyphosate, have led to the emergence of ‘superweeds’ in other countries. Furthermore, Bt crops have been associated with pest resistance, such as in the case of the pink bollworm, and pose risks to non-target species. A 1999 Nature study cited by GTRI even linked Bt crops to risks faced by monarch butterflies.

Critics also argue that the science around GM safety is not yet settled. A 2013 report by the European Network of Scientists for Social and Environmental Responsibility (ENSSER) asserted that many studies proclaiming the safety of GM foods were industry-funded, with a lack of long-term, independent research.

For now, India is focused on securing better market access for its textiles, leather, and footwear industries — areas where it sees potential for mutual benefit. The United States, on the other hand, continues to push for deeper market penetration in India’s agricultural and dairy sectors.

But if the current signals from New Delhi are any indication, India is unlikely to compromise on GM imports. The stakes are high, not just in terms of trade negotiations, but in preserving India’s agricultural sovereignty, biodiversity, and export credibility.

As the talks progress, it remains to be seen whether the two sides can find a middle path, or if this biotech battleground will continue to stall broader economic cooperation between the world’s two largest democracies.