India-US trade talks hit ‘plateau’, finance minister says
Trade deal talks between India and the United States have reached a plateau, and further concessions might be difficult, Finance Minister Nirmala Sitharaman said on Monday, in the latest sign of difficulties in long-running efforts to finalise a bilateral agreement.
The comments are New Delhi’s strongest public acknowledgement that talks on key issues have stalled over a deal both countries have sought since February 2025, with the aim of strengthening economic ties and resolving thorny market access issues.
Talks have reached a point beyond which additional give and take would be “very, very difficult” for both sides, Sitharaman said, citing limited room to manoeuvre.
“It’s been a hard and very vigorously negotiated agreement,” Sitharaman said at an event in the Indian capital, adding that negotiations were continuing.
Scope for a final compromise has narrowed after US President Donald Trump signed into law a congressional bill giving him authority to impose tariffs of up to 100% on countries buying significant amounts of Russian oil, including India and China.
India, the world’s third-biggest oil importer, ranks among the biggest buyers of Russian oil, which has been seen as helping Moscow withstand sweeping Western sanctions since it launched its full-scale invasion of Ukraine in 2022.
Potential new US tariffs have put Indian Prime Minister Narendra Modi in an energy policy bind. Cutting Russian oil imports could increase fuel prices or strain government finances, while maintaining such purchases could hurt exports to India’s largest market.
India has also warned that Washington’s new measures could harm bilateral ties.
Last week, US Trade Representative Jamieson Greer said a trade agreement was not imminent after meeting Indian Trade Minister Piyush Goyal in the United States.
Sitharaman said the balance of trade was in India’s favour, with the United States running a deficit.
“They would want to reduce that imbalance,” she said.
The United States is India’s top export destination, with goods shipments rising to $42.79 billion from April to August, from $40.39 billion a year earlier, according to the latest Indian official data.
Reuters reported earlier this year that India and the US could not reach a consensus, with New Delhi holding out for a better deal while Washington sought more concessions.
“India should stop giving away concessions while the US trade deal remains unfinished,” said Ajay Srivastava, founder of New Delhi-based think-tank Global Trade Research Initiative and a former trade official.
Sitharaman criticised the increasing use of tariffs to tackle trade imbalances, describing it as “weaponising” tariffs and saying their use had moved beyond the role of an instrument in negotiations.
She referred to India’s own large trade deficit with China, suggesting New Delhi would rather resolve the imbalance through talks.
“I can take the same position, can I not, with China? It is so lopsided, it is terribly against me, but no, you can’t, you have to negotiate, you have to give and take,” she added.
Credit: Reuters
