India-US trade negotiations have again reached an impasse, with India's Finance Minister Nirmala Sitharaman describing the talks as having reached a "plateau". The negotiations are particularly important for India's manufacturing and export sectors because the US remains India's largest export market. Indian exports to the US reached $42.79 billion during April-August 2026, according to Reuters. Uncertainty over tariff arrangements could affect exporters across engineering, chemicals, rubber products and other manufacturing segments. Industry is seeking greater tariff stability and improved market access as competing Asian economies continue to negotiate preferential trade arrangements with the US.