India Rejects: India on Friday dismissed as “not accurate” remarks by US Commerce Secretary Howard Lutnick, who claimed that the long-pending India–US trade deal failed to materialise because Prime Minister Narendra Modi did not directly call US President Donald Trump to finalise the agreement.
Responding to the comments, the Ministry of External Affairs (MEA) reiterated that India remains fully committed to reaching a balanced and mutually beneficial bilateral trade agreement with the United States.
India Calls Lutnick’s Remarks “Not Accurate”
Addressing the media, MEA spokesperson Randhir Jaiswal said the characterisation of the trade talks by the US official did not reflect reality.
“India and the US were committed to negotiating a bilateral trade agreement as far back as February 13 last year. Since then, the two sides have held multiple rounds of negotiations to arrive at a balanced and mutually beneficial trade agreement. On several occasions, we have been close to a deal. The characterisation of these discussions in the reported remarks is not accurate,” Jaiswal said.
He added that India remains keen to bring the negotiations to a conclusion, highlighting the complementary nature of the two economies.
PM Modi and Trump Spoke Multiple Times in 2025: MEA
Countering the suggestion of a diplomatic snub, the MEA noted that Prime Minister Modi and President Trump spoke by phone eight times in 2025, covering a wide range of issues related to the India–US strategic partnership.
The clarification came hours after Lutnick claimed in a podcast interview that the India–US Bilateral Trade Agreement (BTA) stalled because Modi did not personally engage Trump to seal the deal.
Background: Tariffs and Trade Tensions
Trade talks between the two countries broke down last year, following which the Trump administration imposed 50% tariffs on Indian imports in August.
These included:
- 25% tariffs linked to India’s continued purchases of Russian oil
- 25% reciprocal tariffs
Lutnick suggested that Trump’s hardline tariff stance was driven not only by trade differences but also by frustration over what he described as a lack of direct engagement from New Delhi.
“It’s all set up, and you have got to have Modi call the President… So Modi didn’t call,” Lutnick said during the interview.
Trump has since warned that tariffs could rise further unless India reduces its Russian oil imports—remarks that contributed to the rupee hitting a record low and rattled investor sentiment.
Trade Deal Status: Talks Stalled, Door Still Open
Lutnick said India is seeking a tariff rate somewhere between what the US offered to the UK and Vietnam, but added that those earlier terms have now lapsed.
He contrasted India’s approach with that of the UK, recalling how Prime Minister Keir Starmer personally called Trump ahead of a deadline, allowing a deal to be finalised swiftly.
Despite the stalled talks, Lutnick suggested negotiations could resume, saying, “India will work it out.”
Strain in India–US Relations
Relations between New Delhi and Washington faced additional strain last year after:
- Trump claimed to have mediated an India–Pakistan ceasefire, which India rejected
- Modi declined to back Trump’s Nobel Peace Prize aspirations
Contact between the two leaders resumed later with calls on Trump’s birthday, Diwali, and again in December, but the fate of the trade deal remains uncertain heading into 2026.
Key Takeaway
India has firmly rejected claims that personal diplomacy—or the lack of it—derailed the trade talks, insisting that negotiations were substantive, ongoing, and close to agreement at multiple points. While tariffs and geopolitical tensions continue to complicate ties, both sides appear to be leaving the door open for renewed engagement.
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