India-US Trade Talks Hit Plateau Says Sitharaman
India and the United States have reached a critical juncture in their trade pact negotiations, with Finance Minister Nirmala Sitharaman suggesting that further concessions may be difficult. Speaking at the Munich Leaders meeting, she described the talks as 'hard and rigorously negotiated,' noting that both sides have likely hit a 'plateau' beyond which compromises might be challenging.
Sitharaman acknowledged that while some progress could still be possible, the US is primarily focused on reducing its trade imbalance with India. She highlighted that the US seeks to address years of trade losses, a principle that she compared to how India views its trade deficit with China. In 2025-26, India's goods trade surplus with the US was about $34.4 billion, while its deficit with China stood at $112-113 billion.
The finance minister also criticized the weaponization of tariffs, stating that traditional frameworks for negotiation are being undermined. Despite ongoing efforts to finalize an interim trade agreement announced in February, US President Donald Trump recently signed legislation allowing for tariffs of up to 100% on countries purchasing Russian oil, including India. US Trade Representative Jamieson Greer noted that while negotiations are nearing the end, a deal is not imminent.
Sitharaman contrasted the stalled India-US talks with the progress on the India-European Union Free Trade Agreement, set to be signed in December. She called it the 'mother of all deals,' covering a quarter of world trade and global GDP. Additionally, she announced a new template for bilateral investment treaties, which will soon receive cabinet approval, and mentioned ongoing negotiations with countries like Canada and Russia.