Nirmala Sitharaman Says Bilateral Ties Gaining Ground as Multilateralism Weakens

Delhi: Union Finance Minister Nirmala Sitharaman said countries are increasingly turning towards bilateral partnerships as they seek new trade opportunities and strengthen economic ties amid changes in the global multilateral system.

Speaking in Delhi, Sitharaman was asked how bilateral agreements can help countries protect their interests in an era of multilateralism.

Sitharaman Says Bilateral Partnerships Are Gaining Ground

Sitharaman said countries are choosing multilateral arrangements where they believe they will benefit, while also pursuing bilateral relationships that serve specific national interests.

“Countries choose where multilateralism would benefit them, and there are some unique bilaterals which countries choose to have,” she said.

According to the Finance Minister, the balance is increasingly shifting towards bilateral arrangements rather than broader multilateral frameworks.

She said countries are now moving rapidly towards bilateral partnerships and agreements as they look for ways to strengthen economic and trade relationships.

#WATCH | Delhi | On being asked how bilateral deals can keep a country's interests alive in the current era of multilateralism, Union Finance Minister Nirmala Sitharaman says, "Countries choose where multilateralism would benefit them, and there are some unique bilaterals which countries choose to have. The balance is somewhat tilted in favour of the bilateral rather than the multilateral. Countries are now rapidly catching up with — I would put the EU-India also in a bilateral mode -because it's one in the name of union, but of course within them they have. So, bilaterals today are catching up far more than even initiating or beginning a multilateral. It's not deliberate, but in a way, if you don't do it, you're not moving forward. Countries will have to choose new partners for their trade and strengthen the tie through an agreement. And therefore, newer partnerships are being searched for, and they are tied up bilaterally. Multilateralism is not going to go away. But multilateralism has weakened."

— ANI (@ANI) October 5, 2026

Countries Seeking New Trade Partners

Sitharaman said countries will have to identify new partners for trade and strengthen those relationships through agreements.

“Countries will have to choose new partners for their trade and strengthen the tie through an agreement,” she said.

She added that newer partnerships are increasingly being explored and formalised on a bilateral basis.

The shift comes as countries look to build stronger trade relationships while responding to changes in the international economic environment.

EU-India Relationship Also Cited

Sitharaman also referred to the European Union-India relationship, noting that although the EU is a union, its relationship with India can also be viewed in the context of bilateral engagement.

She said countries are increasingly looking towards bilateral arrangements rather than waiting for broader multilateral mechanisms to move forward.

According to her, this does not mean that multilateralism is disappearing, but rather that bilateral partnerships are becoming increasingly important.

‘Multilateralism Is Not Going to Go Away’

Sitharaman stressed that multilateralism will continue to have a role in international relations despite its weakening influence.

“Multilateralism is not going to go away. But multilateralism has weakened,” she said.

Her comments come amid wider changes in global trade and economic partnerships, with countries increasingly pursuing individual agreements and new trading relationships.

The Finance Minister's remarks underline the growing importance of bilateral economic engagement while acknowledging that multilateral institutions and frameworks continue to remain part of the international system.