India-US trade deal stalled because PM Modi did not call Trump, claims commerce secy

A major revelation has emerged behind the long-stalled India–US trade deal, suggesting that diplomacy, rather than policy differences, may be the real reason the agreement failed to move forward.

US Commerce Secretary Howard Lutnick has claimed that the deal could not be finalised because Indian Prime Minister Narendra Modi did not make a direct phone call to  US President Donald Trump.

Speaking about the India–US trade negotiations, Howard Lutnick said, Prime Minister Modi never directly spoke to Donald Trump, which became the main obstacle. Lutnick claimed that Trump had expected a personal call from New Delhi, as the proposed agreement was seen as ‘Trump’s deal’.

In an interview, Lutnick stated that the entire framework of the trade deal was ready. “President Trump wanted PM Modi to personally call him to discuss and finalise the agreement. However, the Indian government appeared uncomfortable with this approach, and the call never happened,” he said.

India now faces steep tariffs ranging from 25% to 50% on several products.

The deadline to finalise the India–US trade deal was set for November last year. However, despite rounds of prolonged negotiations, no concrete outcome emerged, and both countries missed what was seen as a crucial opportunity.

Trump’s dissatisfaction over India’s decision to purchase oil from Russia further aggravated tensions, leading to repeated hikes in tariffs on Indian goods.

As a result, the ambitious target of taking bilateral trade between India and the US to $500 billion by 2030 now appears to be at risk.

At present, bilateral trade stands at around $191 billion. With the trade deal stalled, concerns are growing that economic momentum between the two nations could slow significantly in the coming years.