New Delhi, July 15 -- An important discussion between India and the United States, aimed at finalising and strengthening a bilateral trade deal to $500 billion by 2030, has reached a stalemate over dairy and agriculture. New Delhi has refused to allow American dairy imports, citing cultural concerns over "non-veg milk."

India has clearly called it a "non-negotiable red line" to safeguard its citizens and is seeking a stringent certification that assures imported milk comes from cows not fed animal-based products such as meat or blood.

India has strongly declined to yield on dairy. The industry nourishes over 1.4 billion individuals, and provides jobs to more than 80 million, mostly small-scale farmers. "There is no question of conceding...