India-US trade talks have reached a “plateau”, Finance Minister Nirmala Sitharaman said on 5 October 2026, signalling that a full trade agreement with Washington is not close. US Trade Representative Jamieson Greer had said days earlier that a deal is in its final stages but not “imminent”.
Sitharaman’s words, as reported by ThePrint, were: “we would like to believe that both sides have reached a plateau beyond which giving or taking might be very, very difficult.” She added that if there are rooms to operate from, both sides would do it. The remarks followed an interim arrangement reached earlier in 2026, under which a February framework cut US tariffs on Indian goods from 50% to 18%, according to a Reuters report carried by Modern Diplomacy on 6 October.
Why Have India-US Trade Talks Stalled?
Neither government has said specifically why the talks are delayed, but the reporting points to several pressure points. India wants assurances of a more favourable tariff rate than its peers, and terms better than those given to Vietnam and China, along with no additional penalties once a deal is signed. India also wants to protect sensitive sectors such as agriculture, while the US wants India to cut Russian oil imports, which the Reuters report says have not fallen significantly.
What Is the 100% Tariff Threat on Russian Oil Buyers?
New US legislation would let President Donald Trump impose tariffs of up to 100% on the top buyers of Russian oil and gas. India has warned that this could harm bilateral ties and disrupt global energy markets. The Reuters report adds that the US Supreme Court invalidated the use of emergency powers for global tariffs, which left a 10% baseline rate, and that a US Section 301 investigation into alleged industrial overproduction by several nations remains unfinished, adding uncertainty for Indian exporters.
What Does This Mean for Indian Exporters?
The United States remains India’s largest export market. Indian analysts quoted in the Reuters report warn that without a deal, India risks higher tariffs because of the ongoing investigations and its oil purchases. Exporters in sectors such as textiles, chemicals, engineering goods and gems face continued uncertainty on the final tariff level. No statement from trade bodies such as FIEO or CII on the plateau remark was found in the sources reviewed for this article.
Market and Trade Reaction
No direct market move tied to the plateau remark was identified in the sources reviewed. Indian equities fell on 7 October mainly after the RBI rate hike, and the rupee was at a five-month low, which keeps trade and energy costs in focus for importers and exporters alike.
What Happens Next?
The Reuters report says further talks may take place when US Secretary of State Marco Rubio visits India later in October. Watch for the outcome of the Section 301 probe, progress of the Russian-oil tariff legislation, and any announcement from the Commerce Ministry on a possible deal timeline.
Frequently Asked Questions
What did Nirmala Sitharaman say about the India-US trade deal?
She said both sides appear to have reached a plateau beyond which giving or taking might be very difficult, while adding that both would act if there is room to operate.
What are the current US tariffs on Indian goods?
A February 2026 framework cut tariffs on Indian goods from 50% to 18%, according to Reuters. A separate 10% baseline tariff applies globally after the US Supreme Court invalidated emergency-power tariffs.
Is a final India-US trade deal close?
Not yet. USTR Jamieson Greer said a deal is in its final stages but not imminent, and officials from both countries have acknowledged the talks have stalled.
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