New Delhi: India and the United States have reached a difficult stage in their trade negotiations, with Finance Minister Nirmala Sitharaman saying the talks have reached a plateau as further concessions from either side have become difficult.
Sitharaman said on Monday that negotiations between the two countries were still continuing. However, she indicated that moving beyond their current positions would require both sides to make decisions that could be difficult to accept.
Her comments came days after US Trade Representative Jamieson Greer said that a trade agreement with India was not imminent. The two statements suggest that the negotiations remain active but that expectations of a deal in the near future have weakened.
Greer made his comments on October 1 after meeting India's Commerce and Industry Minister Piyush Goyal during the G20 Trade Ministers meeting in Milwaukee, Wisconsin. The two sides discussed the remaining issues in their negotiations as India continued efforts to advance an interim trade agreement with the United States.
The latest developments represent a change in tone from earlier this year. In June, Indian officials said discussions with the United States had made substantial progress and that both countries were working towards an interim agreement.
India and the United States began negotiations on a broader bilateral trade agreement in February 2025. The talks cover tariffs, market access, non tariff barriers, digital trade, services, investment and other areas of economic cooperation.
In February 2026, the two countries announced a framework for an interim trade agreement. The framework included an 18 percent reciprocal tariff rate for Indian goods covered by the arrangement, along with Indian commitments to reduce or remove tariffs on a range of US products.
The framework was intended to provide a basis for further negotiations rather than settle all outstanding differences between the two countries. Discussions have continued on market access and other areas where the two sides have different positions.
Trade between India and the United States is significant for both economies. US government figures show that US goods trade with India totalled about $149.1 billion in 2025. US goods exports to India were about $45.4 billion, while imports from India were about $103.8 billion. This left the United States with a goods trade deficit of about $58.4 billion.
Reducing the US trade deficit with India has been an important concern for the administration of President Donald Trump. Washington has also sought greater access for American products in the Indian market.
India, meanwhile, is seeking greater access to the US market while protecting important domestic economic interests and maintaining room for its own trade and economic policies.
Another issue that has added to the difficulty is India's continued purchase of Russian oil.
A US law signed in September gives President Donald Trump authority to impose tariffs of up to 100 percent on major buyers of Russian oil in certain circumstances. The measure has increased pressure on India because Russia remains an important source of crude oil for the country.
However, the law does not automatically impose a 100 percent tariff on India. Any such action would depend on decisions by the US administration.
The issue of Russian oil has therefore added another layer to the trade negotiations, which are already dealing with differences over tariffs and market access. However, it remains unclear whether it is the main reason for the current difficulties.
The exact details of all the remaining disagreements have not been made public. US officials have said that several issues remain unresolved, while Indian officials continue to indicate that negotiations are ongoing.
For now, neither country has announced a final date for signing an agreement.
The latest developments point to a difficult but continuing negotiation rather than a breakdown in relations. Further progress will depend on whether India and the United States can find enough room for compromise on the remaining issues.