India-US Trade Talks Hit Difficult Stage

NEW DELHI — India and the United States have reached a difficult stage in their trade negotiations, with Finance Minister Nirmala Sitharaman saying that further concessions could be very difficult for both sides. She said the negotiations are still continuing, but the two countries appear to have reached a “plateau” after lengthy discussions.

Speaking at an event in New Delhi, Sitharaman said the proposed trade agreement had been the result of hard and detailed negotiations. She said there could still be room for progress if both sides found areas where further movement was possible.

India and the United States have been negotiating a trade agreement since February 2025. Market access and the trade imbalance between the two countries are among the key issues. The United States wants to reduce its trade deficit with India, while India has been seeking better access to the US market. Sitharaman said the current trade balance is in India's favour.

The Finance Minister also criticised the growing use of tariffs to deal with trade imbalances. She said countries should continue to use negotiations to address differences in trade and find a balance through mutual concessions. She also pointed to India's large trade imbalance with China as an example of an issue that should be addressed through talks.

The trade negotiations are also taking place against the backdrop of US pressure over India's purchases of Russian oil. New US measures could allow higher tariffs on countries that continue to buy significant amounts of Russian oil. India, one of the major buyers of Russian crude, faces the challenge of protecting its energy needs while maintaining access to the US market.

The trade agreement has not been abandoned and negotiations are continuing. However, Sitharaman's comments indicate that reaching further compromises may be difficult unless both sides find additional areas where they can move forward.