Finance Minister says negotiations remain open but both sides have limited room for further give-and-take, while highlighting India’s approach to major trade agreements
New Delhi, Oct 2026 : Finance Minister Nirmala Sitharaman on Monday said India-US trade negotiations were continuing but appeared to have reached a “plateau”, with further concessions becoming increasingly difficult for both sides. She, however, indicated that discussions could move forward if both countries identified additional room for compromise.
Speaking at the Munich Leaders Meeting 2026 in New Delhi, Sitharaman described the proposed trade agreement as the outcome of hard and rigorous negotiations. She said both India and the United States had reached a stage where further “giving or taking” could prove challenging.
“The negotiations are still ongoing although we would like to believe both sides have reached a plateau beyond which giving or taking might be very, very difficult,” she said.
The Finance Minister said there could still be scope for the two sides to explore areas where negotiations could progress. Her comments come as India and the US continue discussions on an interim trade agreement aimed at expanding market access and addressing broader bilateral trade concerns.
A key issue in the negotiations is the trade imbalance between the two countries. Sitharaman said the current trade balance was in India’s favour, with the United States seeking to reduce its deficit in bilateral trade.
She said Washington’s position reflected concerns over what it considered losses accumulated over the years in its trade relationship with India. The issue of trade imbalances has increasingly become an important component of global trade negotiations, with countries seeking greater market access and more balanced commercial relationships.
Sitharaman also highlighted India’s approach to negotiating major trade agreements, citing the India-European Union pact as an example. She described the agreement as exceptionally significant in terms of its potential economic scale and market access.
Referring to European Commission President Ursula von der Leyen’s description of the agreement as the “mother of all deals”, Sitharaman said the pact would cover economies representing about two billion people and roughly a quarter of global GDP.
She said India had agreed to open 92.5 per cent of its tariff lines and about 97 per cent of trade value under the agreement. The European Union, meanwhile, had opened around 99 per cent of trade value and approximately 97 per cent of tariff lines.
Sitharaman stressed that India’s market access commitments had been carefully selected based on the complementarity of the two economies. The objective, she said, was to expand opportunities for Indian exporters while ensuring that domestic competitiveness was not adversely affected.
The Finance Minister’s remarks underline the balancing act involved in India’s trade negotiations, as the country seeks wider access to global markets while protecting sensitive sectors and maintaining economic competitiveness.
The India-US negotiations are expected to remain closely watched as both sides assess whether further movement is possible on unresolved issues and whether sufficient common ground can be found for an interim agreement.
