New Delhi — Trade negotiations between India and the United States have reached what Indian Finance Minister Nirmala Sitharaman described as a plateau, with both sides facing limited room to make further concessions.
Sitharaman said Monday that additional compromise had become “very, very difficult,” although discussions between the two countries are continuing. Her remarks were among New Delhi’s strongest public indications that the negotiations have encountered substantial difficulties.
India and the United States have been negotiating a bilateral trade agreement since February 2025, with the talks focused on strengthening economic ties while addressing disagreements over market access and trade conditions.
The negotiations have become more challenging after US President Donald Trump signed legislation allowing him to impose tariffs of up to 100% on countries that purchase significant amounts of Russian oil, including India and China.
India, the world’s third-largest oil importer, remains one of the biggest buyers of Russian crude. The potential US measures have therefore created a difficult policy choice for New Delhi.
Cutting purchases of Russian oil could raise domestic fuel prices or add pressure to government finances. Maintaining those purchases, however, could leave Indian exports vulnerable to potentially severe restrictions in the United States, India’s largest export market.
Sitharaman said the latest measures have reduced the room available for negotiations. India has also cautioned that the US approach could harm relations between the two countries.
The talks were already facing disagreements over the concessions expected from each side. US Trade Representative Jamieson Greer said last week that an agreement was not imminent after meeting Indian Trade Minister Piyush Goyal in the United States.
The economic relationship is significant for both countries. Indian government data showed goods exports to the United States totaled $42.79 billion from April to August, compared with $40.39 billion over the same period a year earlier.
Sitharaman also criticized the wider use of tariffs as a way to address trade imbalances. She said trade disputes should instead be handled through negotiations rather than by using tariffs as leverage.
She cited India’s trade deficit with China as an example, saying New Delhi could similarly seek action from Beijing but would still have to negotiate and reach a compromise.
The comments underscore the increasingly close connection between trade and energy policy. India needs access to competitively priced crude to support its domestic economy, while the United States is seeking to use trade policy to pressure countries that continue purchasing Russian oil.
For businesses, the uncertainty means the eventual outcome of the negotiations could have consequences beyond tariffs. Energy costs, access to the US export market and the broader commercial relationship between two of the world’s largest economies are all connected to the talks.
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