India and the United States have reached a difficult stage in negotiations for a proposed bilateral trade agreement, with Finance Minister Nirmala Sitharaman saying on Monday that both sides may have limited room for further concessions. She stressed, however, that negotiations remain underway and that the two countries could still explore areas where compromise is possible.

Speaking at the Munich Leaders Meeting, Sitharaman said the agreement was being negotiated “very rigorously” and described the current stage as a “plateau” beyond which further give-and-take could become difficult. Her comments come as India and the US continue efforts to finalise an interim bilateral trade agreement.

Sitharaman Flags Limited Room For Further Concessions

“The agreement negotiations are still ongoing, although we’d like to believe that both the sides have reached a plateau beyond which giving or taking might be very, very difficult. But maybe if there is room to operate from, both sides would do it,” Sitharaman said.

She also highlighted the existing trade balance between the two countries, noting that it currently favours India. “But what is the predominant feature of the trade relations between India and the US? The trade balance is very much in our favour,” she said.

Sitharaman said the United States would naturally seek to narrow that imbalance and address what Washington considers losses accumulated over the years. The trade deficit has been one of the issues shaping the broader negotiations between the two countries.

India-US Interim Trade Agreement Still Under Negotiation

India and the US have been negotiating an interim bilateral trade agreement as part of a broader effort to expand market access and strengthen economic ties. The two countries had reached a framework for an interim agreement earlier this year, but a final deal has not yet been concluded.

The negotiations have faced additional complications following US measures linked to countries purchasing Russian oil. India remains a major buyer of Russian crude, while Washington has sought to use tariffs and other trade measures to address its concerns over trade and economic relations.

US Trade Representative Jamieson Greer has also indicated that an agreement is not imminent, with several issues still requiring resolution. Greer recently met Commerce and Industry Minister Piyush Goyal during the G20 Trade Ministers’ Meeting in Milwaukee, where the two sides discussed efforts to conclude an interim agreement.

Piyush Goyal Holds Talks With US Trade Representative

Goyal said he had a “productive discussion” with Greer on the sidelines of the G20 meeting, with the talks focused on an early conclusion of a mutually beneficial interim agreement under the India-US Bilateral Trade Agreement.

The ministers also exchanged views on the G20 deliberations under the US chairship. Goyal’s meetings in the US are part of India’s continuing diplomatic and trade engagement with Washington as both countries seek to resolve outstanding issues in the negotiations.

The latest discussions come against the backdrop of a broader push by India to deepen trade ties with multiple partners while continuing negotiations with the US. The government has also been pursuing agreements with other major economies and trading blocs.

Sitharaman Says No ‘Lindsey Graham Bill’ In Europe

Sitharaman also addressed concerns over whether India’s purchase of Russian oil could complicate its trade negotiations with the European Union. Asked whether the issue had become a contentious factor in talks with European partners, she said there was no equivalent of the US legislation in Europe.

“In Europe, as much as I understand till today, there is no Lindsey Graham bill,” Sitharaman said. The reference was to US legislation associated with sanctions and tariffs targeting countries that continue significant economic engagement with Russia.

Her remarks came as India continues to balance its trade and energy relationships with major global economies. Sitharaman has also argued that tariffs and trade negotiations are increasingly being used together as countries seek to protect their economic interests.

Modi, Trump Review Bilateral Ties

The latest trade discussions follow a conversation between Prime Minister Narendra Modi and US President Donald Trump on September 30. Modi said the two leaders reviewed bilateral cooperation in trade, defence, energy and critical technologies during their discussion.

“Had a productive conversation with President Trump. We reviewed our bilateral cooperation in trade, defence, energy, critical technologies and other areas. We agreed to maintain close engagement to take our Comprehensive Global Strategic Partnership forward,” Modi said in a post on social media.

The two leaders also discussed regional and international developments, including efforts to advance global peace and security. With trade negotiations still unresolved, the coming weeks are expected to remain focused on finding areas of compromise while both sides assess the remaining issues in the proposed agreement.

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