India–US Trade Deal Stalled as Modi Did Not Call Trump, Says US Commerce Secretary

The long-discussed India–United States trade agreement failed to materialise after Prime Minister Narendra Modi did not directly reach out to U.S. President Donald Trump, according to remarks made by U.S. Commerce Secretary Howard Lutnick.

Speaking during a recent podcast, Lutnick claimed that negotiations stalled because New Delhi was reluctant to make a direct leader-level call to finalise the agreement. He said he had urged Prime Minister Modi to personally contact President Trump to close the deal, but India was “uncomfortable” doing so, resulting in the process losing momentum.

The comments come shortly after President Trump publicly stated that Prime Minister Modi was aware of Washington’s dissatisfaction over India’s continued purchases of Russian oil. Trump had also warned that the United States could raise tariffs on Indian goods “very quickly” if concerns were not addressed.

At the time, India and the U.S. were in the midst of six rounds of negotiations aimed at finalising a bilateral trade pact. The proposed agreement reportedly included a framework to resolve tariffs of up to 50% on certain Indian exports entering the American market.

Lutnick noted that while talks with India slowed, the U.S. moved ahead with trade deals involving Indonesia, the Philippines, and Vietnam, assuming India’s agreement would be concluded earlier. He said subsequent deals were finalised at higher tariff benchmarks, complicating matters when India later indicated readiness to proceed.

The stalled trade deal underscores the growing complexities in India–US economic relations, particularly as geopolitical issues, energy security, and trade protectionism increasingly shape bilateral negotiations.