India–US trade talks approach the limits of further concessions
India’s finance minister Nirmala Sitharaman said trade negotiations with the United States were continuing, although both sides might have reached a point where further concessions were difficult. Her October 5 remarks left room for continued engagement. The talks concern an unfinished agreement, with tariffs and India’s trade surplus among the issues shaping the negotiations; no signed deal was announced.
Economics & Markets··Morning
Negotiators face a narrower space for compromise
India’s finance minister Nirmala Sitharaman said on October 5 that trade talks with the United States were continuing, although additional concessions had become difficult. Speaking at the Munich Leaders Meeting in New Delhi, she described an agreement subjected to rigorous negotiations but still unfinished. In her assessment, the two sides might have reached a plateau where giving or obtaining more was very hard. She left open further progress if negotiators could identify remaining room for compromise.[1], [3]
The trade surplus remains part of the bargaining
Sitharaman said India’s trade balance with the United States favoured India and Washington wanted to reduce the imbalance. India’s surplus was 12.3 billion dollars during April–July of the current financial year, with exports of 34.5 billion dollars and imports of 22.2 billion dollars. Washington sought a narrower deficit; New Delhi sought greater market access while protecting sensitive areas. The countries’ different interests remained part of the unfinished bilateral negotiations.[1], [3]
The minister also addressed the increasing use of tariffs in trade relations. In her account, tariffs had traditionally been part of negotiations, with countries offering market access in return for concessions. She described a change in how governments addressed imbalances, with other means being used alongside the negotiations. Her remarks concerned the instruments governments employed and the room for further bargaining, as both sides continued working towards an agreement.[1], [2]
An interim framework precedes the unfinished agreement
A framework announced in February 2026 concerned an interim agreement covering tariffs, non-tariff barriers, preferential market access and supply-chain cooperation. The broader bilateral discussions had launched in February 2025, preceding the interim framework. Broader bilateral negotiations continued beyond that framework. US Trade Representative Jamieson Greer, the official responsible for Washington’s trade negotiations, had said a deal was not imminent and identified unresolved issues. India’s commerce minister Piyush Goyal was in the United States for trade discussions. Those contacts continued alongside Sitharaman’s assessment of the limited room for additional concessions.[1], [3]
