Winning Bizness Desk
Mumbai.The India–US trade deal has hit a political roadblock after a public claim by America’s commerce secretary that Prime Minister Narendra Modi did not personally call President Donald Trump to close the agreement. The remark has triggered sharp reactions in New Delhi, which insists that talks never stopped and that both leaders were in regular contact throughout 2025. The episode has exposed the role of personal diplomacy, deadlines and political optics in high-stakes trade negotiations between the two strategic partners.
Claim links delay to personal outreach
US commerce secretary Howard Lutnick said the trade deal with India did not collapse due to policy differences but because Prime Minister Modi did not directly call President Trump. Speaking on a podcast, Lutnick claimed Trump was keen to personally conclude the agreement and expected a phone call from Modi before the deadline. Experts have linked this assertion to Trump’s well-known preference for direct leader-level engagement and his sensitivity to personal gestures.
India rejects US version of events
India’s external affairs ministry dismissed Lutnick’s claim as inaccurate. MEA spokesperson Randhir Jaiswal said Prime Minister Modi and President Trump spoke eight times over the phone in 2025 alone. He added that both sides had been working on a bilateral trade agreement since February 13, 2025, and had completed multiple rounds of negotiations. According to India, talks progressed steadily and repeatedly came close to finalisation.
Deal deadline and missed window
Lutnick said the trade deal was virtually ready and India was given three Fridays to finalise talks. He claimed Trump wanted to close the agreement personally and that only a phone call was pending. When the call did not come, the deadline expired.
Key points highlighted by Lutnick included:
- The agreement was near completion
- India was given a fixed time window
- Trump wanted personal confirmation
- The deadline passed without a call
Other countries moved ahead
According to the US commerce secretary, India’s delay allowed other countries to move faster. The US finalised trade deals with Indonesia, the Philippines and Vietnam instead. Lutnick cited the UK as an example, saying Prime Minister Keir Starmer called Trump before the deadline, leading to a deal announcement the next day.
Countries mentioned by the US side:
- Indonesia
- Philippines
- Vietnam
- United Kingdom
Tariffs, ego clash and trade gap
Lutnick said that when India returned weeks later saying it was ready, the response was that the opportunity had passed. He added that India now wants terms similar to those offered earlier, but those were no longer on the table. Analysts believe the issue escalated due to a clash of egos and was worsened by US anger over India’s purchase of Russian oil.
Current trade pressures include:
- 50 percent total US tariff on India
- 25 percent reciprocal tariff
- 25 percent penalty over Russian oil
- US concern over rising trade deficit
India’s trade deficit with the US stood at 41.18 billion dollars in 2024–25, up from 35.32 billion dollars the previous year. While both sides continue to talk, the trade deal remains unresolved.
