Sitharaman: Bilateral Deals Rising as Multilateralism Weakens

India's finance minister signalled a shift toward bilateral trade and investment agreements at the Munich Leaders Meeting in New Delhi, saying multilateral cooperation has weakened and countries are seeking new partners. Officials said the minister added there is "no Lindsey Graham Bill in Europe" when discussing India's strategic autonomy over Russian oil purchases. Reaction pending.

India shifts to bilateral pacts

Officials said the finance minister described bilateral accords as gaining ground as governments diversify trade links and hedge political risk. She framed the move as pragmatic rather than ideological, saying individual deals could advance faster than stalled multilateral talks. Officials said this approach targets both market access and legal protections for investors.

Officials said Delhi expects tangible outcomes: the finance minister said India could conclude bilateral investment protection agreements with at least three more countries by December 31, 2026. That timetable, if met, would create enforceable dispute-resolution and protection frameworks that aim to lower investor risk and could speed project-level commitments from foreign firms.

Officials said the shift will affect trade policy planning and negotiations, prompting other capitals to consider reciprocal bilateral offers. Policymakers and companies should watch which countries sign first and the legal contours of those deals, since their scope will determine whether the pivot alters regional supply chains or mainly codifies existing commercial links.