India-US Trade Talks Reach “Plateau”, Says Nirmala Sitharaman
India and the United States have reached a “plateau” in negotiations for a broader trade agreement, Finance Minister Nirmala Sitharaman said at the Munich Security Conference, indicating that further concessions from either side could be difficult at this stage.
Sitharaman described the proposed agreement as a “hard and rigorously negotiated” deal and said both countries may find it increasingly difficult to give more ground as talks progress.
“Beyond this plateau, giving or taking more for a trade deal will be very very difficult for India and the US,” she said.
The Finance Minister also indicated that Washington is looking beyond the trade negotiations to address its trade imbalance with India.
Sitharaman said she would “like to believe” that the two countries had reached a plateau in the negotiations, suggesting that the remaining differences could prove challenging to bridge.
WHERE THE NEGOTIATIONS STAND
India and the US began negotiations on a broader Bilateral Trade Agreement (BTA) in February 2025 after Prime Minister Narendra Modi and then-US President Donald Trump agreed to launch the process during Modi’s visit to Washington.
The two countries had set an ambitious target of more than doubling bilateral trade to $500 billion by 2030.
The negotiations have continued for more than a year, with the two sides initially focusing on an interim agreement that could serve as a stepping stone towards the larger BTA.
In February 2026, India and the US announced a framework for an interim trade agreement, while acknowledging that further negotiations would be required to complete the broader pact.
However, the agreement has yet to be finalised.
US Trade Representative Jamieson Greer said on October 1 that a trade deal was not imminent, although discussions between the two sides were continuing.
TARIFFS AND TRADE IMBALANCE REMAIN KEY ISSUES
The latest negotiations have focused on tariffs, market access and the wider imbalance in bilateral trade.
Indian Commerce Minister Piyush Goyal was in the US from September 29 to October 5 for discussions on the proposed interim agreement.
Sitharaman’s remarks suggest that the negotiations have now reached a delicate stage, with limited room for additional concessions from either side.
At the same time, Washington is looking at ways beyond the formal trade agreement to reduce its trade deficit with India.
For now, both countries remain engaged, but Sitharaman’s comments underline the difficulty of taking the negotiations to the next stage.
The broader BTA remains under discussion, while the interim agreement has yet to cross the final hurdle.
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