Trade deal talks between India and the United States have reached a "plateau" and further concessions may now be very difficult, Finance Minister Nirmala Sitharaman said on Monday, in New Delhi's strongest public acknowledgement that negotiations have stalled.
"The negotiations are still ongoing but we would like to believe that both sides have reached a plateau beyond which giving or taking might be very difficult," Sitharaman said at the Munich Leaders Meeting in the Indian capital. She described the agreement as "hard and very rigorously negotiated."
Tariffs narrow the room
The remarks come in a week of fresh pressure. US Trade Representative Jamieson Greer said last week that an India-US trade agreement was "not imminent" after meeting Commerce Minister Piyush Goyal in the United States.
Scope for a final compromise has also narrowed after President Donald Trump signed into law a congressional bill giving him authority to impose tariffs of up to 100 per cent on major buyers of Russian energy, including India and China. India, among the world's biggest buyers of Russian oil, now faces an energy policy bind: cutting Russian imports could raise fuel prices or stress government finances, while maintaining them risks crippling exports to its largest market. New Delhi has warned that the measures could harm ties.
Weaponisation of tariffs
Sitharaman said a defining feature of the trade relationship is India's substantial trade surplus with the US, which Washington is keen to address. But she argued that the way imbalances are being corrected has changed: "Tariffs have become weaponised," she said, noting that negotiation used to be the only platform for addressing lopsidedness.
The talks have been under way since February 2025, aimed at strengthening economic ties and resolving market access issues. Sitharaman also said that India's Russian oil imports did not feature as a condition in negotiations on the India-EU free trade agreement, which is set to be signed in December this year.
Sources:
The Hindu: India-U.S. deal has reached plateau, says Sitharaman
Reuters: India-US trade talks hit 'plateau', finance minister says
"The negotiations are still ongoing but we would like to believe that both sides have reached a plateau beyond which giving or taking might be very difficult," Sitharaman said at the Munich Leaders Meeting in the Indian capital. She described the agreement as "hard and very rigorously negotiated."
Tariffs narrow the room
The remarks come in a week of fresh pressure. US Trade Representative Jamieson Greer said last week that an India-US trade agreement was "not imminent" after meeting Commerce Minister Piyush Goyal in the United States.
Scope for a final compromise has also narrowed after President Donald Trump signed into law a congressional bill giving him authority to impose tariffs of up to 100 per cent on major buyers of Russian energy, including India and China. India, among the world's biggest buyers of Russian oil, now faces an energy policy bind: cutting Russian imports could raise fuel prices or stress government finances, while maintaining them risks crippling exports to its largest market. New Delhi has warned that the measures could harm ties.
Weaponisation of tariffs
Sitharaman said a defining feature of the trade relationship is India's substantial trade surplus with the US, which Washington is keen to address. But she argued that the way imbalances are being corrected has changed: "Tariffs have become weaponised," she said, noting that negotiation used to be the only platform for addressing lopsidedness.
The talks have been under way since February 2025, aimed at strengthening economic ties and resolving market access issues. Sitharaman also said that India's Russian oil imports did not feature as a condition in negotiations on the India-EU free trade agreement, which is set to be signed in December this year.
Sources:
The Hindu: India-U.S. deal has reached plateau, says Sitharaman
Reuters: India-US trade talks hit 'plateau', finance minister says
