India-US trade pact to be concluded soon in global trade interest: Sitharaman

Mangalore Today News Network

New Delhi, Oct 16, 2026: Finance Minister Nirmala Sitharaman on Friday expressed hope that the India-US trade agreement would be concluded at the earliest, saying it would benefit global trade and strengthen economic ties between the two countries.

“Recently, Indian Commerce Minister Piyush Goyal also said that they expect and wish to have the agreement signed soon. Negotiations have been going on. I hope, in the interest of global trade and trade between the two partners, India and the US, the agreement gets concluded at the earliest,” she said.

Goyal had said on Thursday that the first phase of the India-US trade pact had been finalised and was undergoing legal drafting.

On trade with China, Sitharaman said the growing trade imbalance and persistent restrictions on market access for Indian products remained major concerns despite years of engagement with Beijing.

India has consistently sought greater access to the Chinese market for products such as generic medicines, bovine meat, vegetables and other perishable goods, but has made little progress, she said.

Speaking at an interaction organised by the Atlantic Council on the sidelines of the IMF-World Bank annual meetings in Bangkok, Thailand, Sitharaman identified non-tariff barriers as the biggest obstacle to trade between India and China.

She said China had imposed phytosanitary measures and other non-tariff restrictions, despite the scope for resolving such issues through discussions and investigations.

Sitharaman said India had not resorted to punitive tariffs against trading partners to address significant trade imbalances, preferring negotiations despite the time involved.

On BRICS, she said the grouping should be viewed as a partnership aimed at improving people’s welfare rather than as a platform to counter any country or bloc.

“I don’t think BRICS’s intention is to counter others. It is more to strengthen the partnership through BRICS,” she said.

Noting that BRICS represented nearly 40 per cent of the world’s population, Sitharaman said cooperation among member countries could boost trade, promote mutual understanding and create greater economic opportunities.

With new members joining the grouping, 11 to 12 countries were actively engaging with one another, collectively accounting for around 45 per cent of global trade, she added.

On India’s economic performance, Sitharaman said the country had maintained strong growth despite global disruptions and remained the world’s fastest-growing major economy over the past four to five years, particularly in the post-Covid-19 period.

She attributed the growth to inclusive development, wider access to resources, skill development among young people, fiscal prudence and increased public capital expenditure.

The finance minister said public investment in infrastructure generated a stronger multiplier effect than transferring equivalent amounts directly to people. Such investment also created employment and supported broader economic activity.

She added that infrastructure spending helped channel money to people through economic activity without placing the same pressure on the fiscal deficit as some alternative forms of expenditure.

Sitharaman said government borrowing was broadly aligned with infrastructure expenditure, arguing that debt-financed asset creation was benefiting the economy.

“Borrowing goes for asset creation, and as a result, the economy has benefited,” she said.