Sitharaman hints India-US trade deal may have reached a deadlock; Here's what she said

Union Finance Minister Nirmala Sitharaman on Monday revealed that the negotiations between India and the US for a bilateral trade agreement are still underway but both sides may have reached a point where further concessions could be difficult.

Speaking at the Munich Leaders Meeting, Sitharaman said the two countries would continue to explore whether there was any room for further movement in the negotiations.

"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 are rooms to operate from, both sides would do it," she said.

India and the US had in February announced the finalisation of a framework for the first phase of their bilateral trade agreement (BTA).

However, subsequent changes in the US tariff regime led to further negotiations between the two sides.

"We have to find the right comparable competitive advantage over our competitors, so that we can quickly execute the agreement," Goyal had said ahead of his US visit.

India competes with Bangladesh, Sri Lanka, Vietnam, Thailand, Cambodia, Indonesia and Malaysia in several US markets.

A preferential tariff arrangement for Indian goods vis-a-vis these competitors would improve the price competitiveness of Indian exporters.

The US is India's largest export destination and second-largest trading partner.

India's goods exports to the US were valued at about $87.3 billion in 2025, while bilateral goods trade was close to $141 billion.

US Trade Representative Jamieson Greer has also indicated that the agreement is not yet imminent as the two sides have identified “the universe of items” that are sticking points.

"We had a very constructive conversation, minister Goyal and myself. Our staff is meeting right now since they're in the country, and we're here," Greer said after meeting Goyal on the sidelines of the G20 Trade Ministers' meeting in Milwaukee on Wednesday.

"We are continually trying to finish the trade deal with India. I would characterise it, as we say in the US, we're in the short strokes. So, I think we're toward the end of it," he said.

Greer said US President Donald Trump and Prime Minister Narendra Modi had a constructive conversation on Wednesday and could speak again soon to assess progress on the trade negotiations.

"At the same time, there's no -- I don't think there's something imminent -- but we truly have identified the universe of items that are sticking points. We're working diligently toward them," Greer said.

"My sense is that the president and the prime minister may have another call very soon on this, just to assess progress and where we are," he added.