New Delhi: India and the United States have reached a plateau in negotiations for a bilateral trade agreement, Finance Minister Nirmala Sitharaman said on Monday, indicating that further concessions from either side could be difficult at the current stage.

Sitharaman said the negotiations were still continuing but described the agreement as a hard and rigorously negotiated process. She indicated that both countries had reached a point beyond which additional give-and-take could prove challenging, although she left open the possibility of further movement if negotiators found room for compromise.

The comments come days after US Trade Representative Jamieson Greer said that a trade agreement was not imminent, despite discussions between the two countries continuing.

Sitharaman says negotiations remain ongoing

Sitharaman’s remarks do not indicate that the India-US trade negotiations have been formally called off.

Speaking at the Munich Leaders Meeting in New Delhi, she said the discussions were continuing but that both sides appeared to have reached a plateau. According to her assessment, moving beyond that point would require both countries to find additional space for negotiation.

The finance minister’s comments suggest that the remaining issues are proving difficult to resolve, particularly as both sides seek to protect their respective economic interests.

The negotiations have been underway for more than a year and cover a broad range of issues, including tariffs, market access and the bilateral trade balance.

US trade deficit remains a key issue

A major point highlighted by Sitharaman was the trade imbalance between India and the United States.

She said the trade balance currently favours India, meaning the US runs a deficit in goods trade with India. Washington has been seeking to reduce that imbalance as part of its broader approach to trade negotiations.

Sitharaman also indicated that the US is looking at ways beyond traditional negotiations to address the imbalance. She pointed to the increasing use of tariffs as a tool through which countries seek to influence trade relationships.

The trade imbalance has therefore become an important consideration in the ongoing negotiations, alongside questions about market access and tariff levels.

Broader Bilateral Trade Agreement under discussion

India and the US have been negotiating a broader Bilateral Trade Agreement since February 2025.

The negotiations were launched after Prime Minister Narendra Modi and US President Donald Trump agreed to pursue a wider trade arrangement aimed at expanding bilateral commerce. The two countries had also set an objective of more than doubling bilateral trade to $500 billion by 2030.

In February 2026, the two countries announced a framework for an interim trade agreement. The framework included commitments relating to tariff reductions, market access and non-tariff barriers, while negotiations for the broader agreement continued.

However, the interim framework has not yet resulted in the conclusion of the wider agreement.

Tariffs and market access remain sensitive

Tariff levels and access to each other’s markets remain central to the negotiations.

The February framework envisaged India reducing or eliminating tariffs on a range of US industrial and agricultural products. In return, the US framework included an 18% reciprocal tariff rate for specified Indian-origin goods, with potential removal of reciprocal tariffs on certain categories subject to successful conclusion of the interim agreement.

India has continued to seek improved market access for its exports, while the US has pressed for greater access to the Indian market and measures to address the trade imbalance.

These issues have made the negotiations particularly complex because concessions in one sector can have implications for domestic industries and consumers in the other country.

Talks continue despite lack of immediate deal

The latest comments follow an assessment from US Trade Representative Jamieson Greer that a trade deal was not imminent.

Greer had said on October 1 that negotiations were continuing and that unresolved issues remained. Indian Commerce and Industry Minister Piyush Goyal also held discussions with Greer in the US during the latest phase of negotiations.

The two sides have therefore continued diplomatic and trade-level engagement even as expectations of an immediate agreement have diminished.

Sitharaman’s comments similarly indicate that the talks remain active rather than having reached a formal breakdown.

India continues to engage with Washington

The Indian government has maintained that it wants to conclude a mutually beneficial trade agreement with the US.

In July, the Ministry of Commerce and Industry said India continued to engage with Washington on the Bilateral Trade Agreement following the US decision to impose an additional 10% duty under its Section 301 measures related to forced labour. The ministry said the textile-specific mechanism referred to in those measures was yet to be established and that discussions with the US were continuing.

The government has also stressed the importance of protecting Indian economic interests while negotiating improved access to the US market.

For Indian exporters, the outcome of the negotiations could have implications for sectors including textiles, leather, engineering goods, pharmaceuticals and other products sold in the US market.

What the plateau means for businesses

A prolonged negotiation creates uncertainty for businesses on both sides.

Indian exporters and American companies with interests in the Indian market will be watching the discussions closely for clarity on future tariff structures and market-access conditions.

For exporters, changes in US tariffs can directly affect the competitiveness of Indian products. For Indian consumers and businesses, lower tariffs on selected imports could potentially influence prices and access to US goods.

At the same time, domestic industries may seek protection from sudden increases in imports, making tariff negotiations a politically and economically sensitive issue.

The final agreement will therefore need to balance export opportunities, domestic economic interests and the broader strategic relationship between the two countries.

No agreement announced yet

Sitharaman’s statement does not mean that the India-US trade deal negotiations have ended.

Instead, it indicates that both sides have reached a difficult stage where further concessions may be harder to secure. She also suggested that negotiations could move forward if both countries identify sufficient room for compromise.

The latest development means that attention will now remain on further discussions between Indian and US trade officials and whether unresolved issues can be addressed.

The broader economic relationship between India and the US remains significant, with both countries seeking to expand trade and strengthen supply-chain and investment ties.

Conclusion

India and the US have reached a plateau in their trade negotiations, Finance Minister Nirmala Sitharaman said, while stressing that discussions are still continuing.

The main challenges include tariffs, market access and the US trade deficit with India. Recent comments from the US Trade Representative that a deal is not imminent reinforce the view that the remaining issues will require further negotiations.

While the two countries have already established an interim trade framework, the broader Bilateral Trade Agreement has not yet been finalised. Sitharaman’s latest remarks suggest that additional concessions may be difficult, but negotiations could continue if both sides find room for compromise.