India Rejects US Claim On Trade Deal Delay Says ‘PM Modi Did Not Call…’

India has strongly denied the recent statement made by US Commerce Secretary Howard Lutnick, who claimed that a trade deal between India and the United States fell through because Prime Minister Narendra Modi did not personally call US President Donald Trump.

The Indian government called this claim "not accurate" and clarified that talks between the two countries have been ongoing and professional.

India Says Claim Is "Not Accurate"

During a press briefing on Friday, External Affairs Ministry spokesperson Randhir Jaiswal said India and the US have been working seriously toward a balanced and fair trade agreement since February last year. He explained that both sides have held many rounds of discussions to find common ground and that they were close to reaching a deal on several occasions.

"We have seen the remarks. The description of these talks is not accurate," Jaiswal said. He added that India remains committed to achieving a trade deal that benefits both nations, which have strong and complementary economies. He also noted that Prime Minister Modi and President Trump had spoken on the phone eight times in 2025 to discuss different areas of cooperation, including trade.

India's response came just hours after Lutnick claimed that the deal was delayed because Modi chose not to personally call Trump. According to Lutnick, "It was all set up, and you just had to have Modi call the President. But they were uncomfortable doing it. So Modi didn't call."

How the Trade Talks Broke Down

Negotiations between India and the US reportedly stalled last year, after which President Trump raised tariffs on Indian imports to 50%. This included a 25% increase linked to India's continued purchase of Russian oil.

The tariff hike created pressure on the Indian rupee and worried investors who were hoping for progress in the long-pending trade discussions.

Lutnick said India was looking for a tariff rate similar to what the US offered to countries like the UK and Vietnam. However, he admitted that the earlier offer is no longer valid.
He also compared India's situation to that of the UK, saying British Prime Minister Keir Starmer personally called Trump before a key deadline, which helped finalize their trade deal quickly.

Lutnick described India's hesitation as being "on the wrong side of the seesaw," meaning that timing and personal diplomacy made a difference.

Strain in India-US Relations

Relations between India and the US faced challenges last year when Trump imposed additional tariffs after India continued importing Russian oil. Reports suggested that Trump tried to reach Modi several times but did not get a response, which added to the tension.

Despite these differences, communication between the two leaders later resumed through phone calls on occasions such as Modi's birthday, Diwali, and in December. However, the trade deal still remains uncertain, with both countries yet to agree on final terms.

India maintains that it is ready to continue discussions and hopes to reach a fair and beneficial agreement that strengthens the economic partnership between the two nations.