New Delhi, October 5 (Daily Kiran) : Finance Minister Nirmala Sitharaman announced on October 5 that trade negotiations between India and the United States are ongoing but have reached a challenging impasse. Speaking at the Munich Leaders Meeting 2026 in New Delhi, she noted that the current trade balance is in favor of India.
Sitharaman emphasized the complexity of the discussions surrounding the proposed trade agreement, stating, “While discussions are still underway, both sides may have reached a point where it is very difficult to give or take anything further.”
Despite the challenges, she indicated that there may still be room for further dialogue. The Finance Minister pointed out that the U.S. is keen on reducing its trade deficit, which has been a concern due to longstanding losses in trade with India.
These negotiations are part of the framework for an interim trade agreement announced in February 2026. Both nations have committed to finalizing this interim agreement while continuing discussions on a broader bilateral trade deal.
In addition, Sitharaman highlighted a recent trade agreement between India and the European Union as a model for India’s approach to trade agreements. She noted that this deal encompasses economies representing nearly two billion people and about a quarter of global GDP.
Referring to a phrase used by European Commission President Ursula von der Leyen, she remarked that this agreement could be considered “the mother of all agreements.” Under its terms, India has opened up 92.5% of its tariff lines and approximately 97% of its trade value, while the EU has opened nearly 99% of trade value and about 97% of its tariff lines.
Sitharaman explained that the commitments related to market access were selected based on the complementarity of both economies, ensuring that India’s competitiveness remains unaffected.
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