New Delhi: India and the United States have reached a “plateau” in negotiations for a trade agreement, Finance Minister Nirmala Sitharaman said on Monday, October 5, indicating that further concessions from either side could be difficult.
Speaking at the Munich Security Conference, Sitharaman described the ongoing agreement as a “hard and rigorously negotiated” one. She said both countries appeared to have reached a stage beyond which giving or taking more could become “very, very difficult.”
Sitharaman also said the United States was seeking to address its trade imbalance with India through measures beyond the formal negotiations. She argued that trade imbalances should primarily be addressed through negotiations involving market access and reciprocal concessions rather than relying solely on tariffs.
Where India-US Trade Talks Stand
India and the US have been negotiating a broader Bilateral Trade Agreement (BTA) since February 2025. The two countries have been working towards an interim agreement as a first step before completing the wider pact.
The negotiations have focused on tariffs, market access and the trade balance between the two countries. Indian Commerce and Industry Minister Piyush Goyal travelled to the US from September 29 to October 5 for discussions on the proposed interim agreement.
US Trade Representative Jamieson Greer said on October 1 that an agreement was not imminent, although discussions between the two sides were continuing and key sticking points had been identified.
Sitharaman's latest comments indicate that negotiations remain active but that the scope for additional concessions may be limited.
Tariffs and Trade Imbalance
Sitharaman said tariffs have increasingly been used as a tool to address trade imbalances, describing this as a shift from their traditional role in negotiations.
She pointed to India's trade deficit with China as an example of why trade imbalances should be addressed through discussions and negotiated market access rather than unilateral measures.
The US has been seeking to reduce its trade deficit with India, while New Delhi has continued to push for terms that provide greater market access without compromising sensitive domestic sectors.
The two sides have yet to finalise the broader trade agreement.
