Trade negotiations between India and the United States have stalled, with further concessions from either side appearing increasingly unlikely, Indian Finance Minister Nirmala Sitharaman said Monday. This marks a significant public acknowledgment from New Delhi that talks, ongoing since February 2025, have encountered major obstacles in their effort to finalize a bilateral trade agreement aimed at deepening economic ties and resolving contentious market access issues.

Speaking at an event in New Delhi, Sitharaman described the negotiations as “hard and very vigorously negotiated,” but indicated that the scope for compromise is now severely limited. She cited recent developments, including U.S. legislation signed by President Donald Trump that authorizes tariffs of up to 100 percent on countries importing substantial quantities of Russian oil—India included. This measure complicates the situation for India, which is the world’s third-largest oil importer and a significant purchaser of Russian crude. Continued imports from Russia provide a means for Moscow to counter Western sanctions enacted after its invasion of Ukraine in 2022.

The new U.S. tariffs place Indian Prime Minister Narendra Modi in a difficult position: cutting imports of Russian oil could increase fuel costs or pressure government budgets, while maintaining such imports might provoke punitive U.S. tariffs that could damage India’s exports to its largest trading partner. India has expressed concerns that these U.S. measures could strain bilateral relations.

Last week, U.S. Trade Representative Jamieson Greer echoed the impasse, stating after discussions with Indian Trade Minister Piyush Goyal that an agreement was not imminent. Sitharaman also pointed out that the trade balance currently favors India, with the U.S. experiencing a deficit. The United States seeks to reduce this imbalance, she said.

Official Indian data show that from April to August, exports to the U.S. rose to $42.79 billion, up from $40.39 billion during the same period the previous year. Earlier reports suggested that India has resisted concessions perceived as unfavorable, while the U.S. continues to push for more extensive commitments. Ajay Srivastava, founder of the New Delhi-based Global Trade Research Initiative and a former trade official, advised that India should refrain from making further concessions until the trade deal is finalized.

Despite these challenges, the two countries continue to engage in talks, though the path to a comprehensive agreement remains uncertain amid diverging priorities and escalating geopolitical complexities.