India’s trade negotiations with the United States have reached a plateau, Finance Minister Nirmala Sitharaman said Monday, signalling that significant differences remain between New Delhi and Washington despite months of talks.
Speaking at the Munich Leaders Meeting in New Delhi, Sitharaman said negotiations were continuing but suggested both countries had reached a stage where making further concessions could prove difficult.
Her comments follow remarks from U.S. Trade Representative Jamieson Greer, who said last week that an agreement between the two countries was not imminent, although discussions were continuing.
A major sticking point is the trade imbalance between the two countries. Washington is seeking to reduce its goods trade deficit with India by increasing American exports to the Indian market.
Sitharaman questioned how far negotiations could progress if reducing the trade deficit remained the primary measure guiding the talks.
According to U.S. figures, the country’s goods trade deficit with India reached $58.42 billion in 2025, an increase of 27.8 per cent from the previous year. During the first seven months of 2026, the deficit stood at approximately $28.4 billion.
The latest comments come after Indian Prime Minister Narendra Modi and U.S. President Donald Trump discussed bilateral trade, defence, energy and critical technologies during a recent phone call.
Greer described the conversation as constructive, while Modi called it productive. Trump did not publicly comment on the discussion.
The two governments have been negotiating their broader trade relationship throughout the year. Trump announced an interim arrangement with India in February and said New Delhi had agreed to substantially increase purchases of American products.
India, meanwhile, has sought preferential U.S. tariffs that would make Indian exports more competitive in the American market.
Trade experts have warned that failure to finalize an agreement could create economic costs for both countries. American exporters continue to face comparatively high barriers in the Indian market, while the United States remains a crucial destination for Indian goods.
Indian exports to the U.S. currently face a 10 per cent tariff following a U.S. Trade Representative investigation into forced-labour practices across dozens of countries.
However, according to the Indian government, several important exports, including generic pharmaceuticals and smartphones, remain exempt from the duty.
Despite continued negotiations, Sitharaman’s remarks indicate that both governments have limited room to make additional concessions, leaving the timing and terms of a final India-U.S. trade agreement uncertain.
