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India has rejected claims by US Commerce Secretary Howard Lutnick that a bilateral trade deal with the US stalled because Prime Minister Narendra Modi did not call former President Donald Trump.
Trump imposed 50% tariffs on Indian goods in August 2025, including penalties related to purchases of Russian oil, after trade talks reportedly faltered. While negotiations have resumed, the timeline for a final deal remains uncertain, with several informal deadlines already missed. Agriculture remains a key sticking point, as Washington seeks greater access to India’s farm sector, which Delhi has fiercely protected.
Lutnick, speaking on the All-In Podcast, suggested that the deal was near completion. “It was all set up. I said [to the Indian side] you got to have Modi call the president. They were uncomfortable doing it, so Modi didn’t call,” he stated. He further described Trump’s deal-making approach as a “staircase,” where the “first stair gets the best deal,” and claimed that delays from India caused Washington to move forward with other trade agreements with countries like Indonesia and Vietnam.
India has strongly rejected this characterization. Foreign Ministry spokesperson Randhir Jaiswal said on Friday that Lutnick’s remarks were “not accurate.” He highlighted that India and the US had been negotiating a bilateral trade agreement since February 13, 2025, with multiple rounds of discussions bringing both sides close to an agreement on several occasions. “Prime Minister Modi and President Trump spoke on the phone eight times last year, covering different aspects of our wide-ranging partnership,” Jaiswal added.
Despite the 50% tariffs, Indian exports to the US increased by over 22% in November compared to the previous year, demonstrating resilience in trade. India also continues to prioritize its energy needs, following reports that the US might propose further sanctions related to Russian oil imports. Jaiswal stated that India was closely monitoring the proposed legislation while emphasizing the country’s responsibility to meet the energy requirements of its population.
Relations between India and the US, once marked by warmth between Modi and Trump, have faced tensions in recent months. Delhi has repeatedly denied Trump’s claims of brokering a ceasefire between India and Pakistan in May 2025 and reaffirmed that it would not accept third-party mediation regarding Kashmir. While both leaders have had a few phone interactions since, the trade dispute and other issues have placed additional strain on bilateral relations.
