Trade talks need different templates for different partners, says FM Sitharaman

India cannot employ a singular template for trade discussions with prominent economies, as tariffs, geopolitical risks, and supply-chain concerns are transforming the worldwide trading system, Finance Minister Nirmala Sitharaman stated on Monday during the Munich Leaders’ Meeting in New Delhi. She clarified that India's recent talks with the European Union (EU) should not serve as a template for ongoing negotiations with the United States, which are still under negotiation and have not yet been finalized.

Sitharaman emphasized that trade templates can be tailored for different countries and regions, pointing to the trade balance favoring the US, which has a different negotiating priority compared to India. India's exports to the US increased to $87.31 billion in fiscal year 2026 (FY26) from $86.51 billion in FY25, while imports rose to $53.45 billion from $45.63 billion, resulting in a narrower trade surplus of $33.86 billion compared to $40.89 billion.

The India-EU negotiations must consider sensitive sectors like agriculture, dairy, meat, and soybean, as well as supply-chain resilience due to disruptions in existing supply chains. In contrast, India's trade deficit with China has grown significantly since 2014, and traditional negotiations are being replaced by tariff manipulation. India cannot simply replicate China's approach and would need to rely more on negotiation and give-and-take.

Sitharaman highlighted that bilateral and multilateral trade agreements are not mutually exclusive but have shifted towards bilateral agreements due to the weakening of multilateral institutions like the World Trade Organization (WTO). Despite India's simultaneous negotiations with multiple partners, including the US and Canada, the Munich Meetings focused on economic security, resilient supply chains, strategic autonomy, and the evolving role of emerging and middle powers.