India’s Finance Minister Nirmala Sitharaman said trade talks with the United States had reached a plateau, adding to skepticism over the deal between New Delhi and Washington.
“Negotiations are still ongoing, but I would like to believe that we have reached a level where it will be very difficult for both sides to make concessions and make concessions,” Sitharaman told reporters at the Munich summit in New Delhi on Monday.
The finance minister’s comments came shortly after U.S. Trade Representative Jamison Greer said last week that negotiations were ongoing but a trade deal was not “imminent.”
Sitharaman’s comments mark the first time India has acknowledged the challenges it faces in reaching a trade deal with the United States.
He said the US wants to “reduce” its trade imbalance with India and “make up for everything we’ve lost over the last few years.”
“If we talk about trade imbalances being the only criteria for reducing imbalances, how far can we go beyond negotiations,” Sitharaman said.
The US trade deficit in goods with India was $58.42 billion in 2025, an increase of 27.8% ($12.7 billion) from 2024. In the first seven months of 2026, this figure stood at $28.4 billion, according to US data.
Last week, Indian Prime Minister Narendra Modi discussed bilateral trade, defense, energy and critical technology in a phone conversation with US President Donald Trump. Mr. Guria said the meeting was “constructive” and Mr. Modi said it was “productive,” but Mr. Trump did not comment on this.
President Trump announced an interim trade deal with India in February, outlining that New Delhi had agreed to “buy America” at a “much higher level.” Meanwhile, India is seeking preferential tariffs from the United States to make its exports to the United States more competitive.
“Both countries stand to lose if a deal is not reached,” Mark Linscott, former assistant secretary of the U.S. Trade Representative and senior adviser to the U.S.-India Strategic Partnership Forum, told CNBC.
“U.S. exports now face higher tariffs in the Indian market,” he said, adding that if India doesn’t reach a deal soon, “it could face much higher tariffs than other countries, and given the importance of the U.S. market to India, that could be a serious problem.”
India’s exports to the United States are now subject to a 10% tariff as a result of a USTR investigation into forced labor practices, policies, and practices in 60 countries.
According to the Indian government, a significant portion of the country’s exports to the United States, including generic drugs and smartphones, remain exempt from the 10% tariff.
