India-US Trade Talks Hit Plateau as Further Concessions Prove Difficult: FM Sitharaman

New Delhi, Oct 5 (KNN) India and the US appear to have reached a plateau in negotiations for a trade agreement, with further concessions from either side likely to be difficult, Union Finance Minister Nirmala Sitharaman said.

“The agreement 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,” Sitharaman said at the Munich Leaders’ meeting in New Delhi.

Further progress remained possible if both sides found room for negotiation, she added.

US Trade Deficit Remains Key Issue

Sitharaman said the US remains concerned about its trade deficit with India and is increasingly using tariffs alongside negotiations to address such imbalances.

She noted that trade gaps were traditionally addressed through negotiations over reciprocal market access and concessions, but tariffs were now being increasingly “weaponised” for the purpose.

Sitharaman compared this with India's growing trade imbalance with China since 2014, saying countries were increasingly looking beyond conventional negotiations to address such gaps.

Supply Chains Drive Bilateral Deals

Sitharaman said supply-chain security had become a key consideration in trade agreements as countries seek alternative partners following disruptions.

The finance minister highlighted that where supply chains have already been disrupted, countries are looking for new partners to ensure continuity.

She added that the weakening of multilateral trade institutions was making bilateral and regional agreements more important, although countries would continue to engage through multilateral frameworks.

Her comments suggest that India-US negotiations have entered a difficult phase, even as discussions continue on market access, tariffs, trade imbalances and broader economic interests.

(KNN Bureau)