India has denied claims that a missed phone call from Prime Minister Narendra Modi to U.S. President Donald Trump caused last year’s stall in trade negotiations, following remarks by U.S. Commerce Secretary Howard Lutnick.
Speaking on the All-In podcast, Lutnick suggested that trade talks broke down because “Modi didn’t call” Trump, and described the situation as a key factor in the collapse of a potential deal.
Lutnick said Trump had doubled tariffs on Indian goods in August, imposing the world’s highest rates, including a 25% levy on Indian purchases of Russian oil. According to him, the negotiations faltered because New Delhi did not initiate the expected direct communication.
Responding to these remarks, India’s foreign ministry called the characterization “not accurate,” emphasizing that Modi and Trump spoke on eight occasions during 2025 across multiple topics within their broad bilateral partnership.
Indian officials also stated that trade talks had repeatedly approached finalization since February last year, and no single communication lapse derailed negotiations.
The disagreement over tariffs and market access remains unresolved. India is seeking a compromise tariff rate between the U.S. offers previously extended to Britain and Vietnam, though that offer has since expired.
The ongoing uncertainty has impacted financial markets, contributing to the Indian rupee reaching record lows and creating concern among investors awaiting progress in negotiations.
An Indian government official involved in the talks told Reuters that Modi avoided initiating a direct call to prevent being placed in a potentially one-sided discussion, highlighting the complexity of diplomatic and trade negotiations. Meanwhile, India’s trade ministry did not respond to requests for comment on Lutnick’s statements.
While communication challenges were part of the stalled negotiations, New Delhi maintains that multiple discussions occurred at the highest levels, and both countries remain engaged in ongoing talks to reach a mutually beneficial trade agreement.
