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India-US Trade Talks Hit 'Plateau', Further Concessions Difficult: Sitharaman
M
Moneycontrol•05-10-2026, 11:13
India-US Trade Talks Hit 'Plateau', Further Concessions Difficult: Sitharaman
- •Finance Minister Nirmala Sitharaman stated that India-US trade negotiations are ongoing but have reached a point where further concessions are challenging.
- •Sitharaman noted that the trade balance favors India, and the US seeks concessions to reduce its deficit, viewing past losses.
- •The current talks follow a framework for an interim trade agreement announced in February 2026, with broader pact negotiations launched in 2025.
- •India's exports to the US reached $34.5 billion, with imports at $22.2 billion, resulting in a $12.3 billion surplus for India from April to July.
- •Sitharaman criticized the increasing use of tariffs as a 'weapon' to address trade imbalances, questioning their effectiveness outside established frameworks.
Key Questions Answered
Finance Minister Nirmala Sitharaman stated that while negotiations remain ongoing, both sides may have reached a plateau where offering further concessions would be very difficult. She noted that the trade agreement has been vigorously negotiated and that the trade balance currently favors India.
The framework for an interim trade agreement between India and the US was announced in February 2026, following a joint statement published by India's commerce ministry on February 7, 2026.
Sitharaman described the India-EU trade agreement as an example of protecting sensitive sectors like dairy, agriculture, and soya while negotiating a deal between economies accounting for a quarter of global GDP.
