India-US Trade Deal: Nirmala Sitharaman Calls For Early Agreement, Raises Concerns Over China
New Delhi, 16th October 2026: Union Finance Minister Nirmala Sitharaman has called for the India-US bilateral trade agreement to be concluded at the earliest, stating that the deal would benefit global trade and strengthen economic relations between the two countries.
Speaking during an interaction with the Atlantic Council on the sidelines of the International Monetary Fund (IMF) and World Bank annual meetings in Bangkok, Thailand, on Friday, Sitharaman said negotiations were ongoing and expressed hope that the agreement would be signed soon.
Her remarks came a day after Commerce and Industry Minister Piyush Goyal said the first phase of the trade agreement had been finalised and was undergoing legal drafting. The agreement is expected to be operationalised after the legal process is completed and India secures a competitive advantage over its peer economies.
Sitharaman also raised concerns over India’s growing trade imbalance with China, citing restrictions on market access for Indian products despite years of negotiations between the two countries.
She said India had repeatedly sought access to the Chinese market for products such as generic medicines, bovine meat, vegetables and other perishable goods, but progress had remained limited.
“Non-tariff barriers are the biggest hurdle in the trade between India and China,” Sitharaman said, adding that these restrictions continued to affect opportunities for Indian businesses.
The Finance Minister said India had not adopted punitive tariffs as its preferred approach to correcting trade imbalances with its trading partners. Instead, the country had continued to pursue negotiations, even when the process took considerable time.
On the BRICS grouping, Sitharaman said its purpose should be to strengthen partnerships and improve the welfare of its people rather than counter any particular country or bloc. She said cooperation among member countries could improve trade and expand economic opportunities.
Sitharaman also highlighted the need for India to strengthen trade arrangements with other partners. On the trade agreement with the Association of Southeast Asian Nations (ASEAN), she said India wanted to continue the arrangement but with changes to address concerns affecting domestic manufacturers and the Indian market.
She further stressed the need for reforms in municipalities and gram panchayats, saying local bodies must improve their capacity to plan and implement development projects as India works towards its goal of becoming a developed nation by 2047.
