India–US trade pact delayed as Modi avoids call with Trump, says Lutnick

New Delhi: India’s trade pact with the United States was delayed because Prime Minister Narendra Modi did not make a telephone call to President Donald Trump to close the deal they were negotiating, US Commerce Secretary Howard Lutnick said on Friday, according to a Reuters report.

Lutnick told the All-In podcast, a US business and technology show hosted by venture capitalists, that the agreement was “all set up” but required Modi to call Trump to finalise it.

“And they were uncomfortable doing it,” Lutnick said, adding: “So Modi didn’t call,” read the Reuters report.

The comments come after trade talks fell apart last year, with Washington doubling tariffs on Indian goods in August to 50 per cent, the highest rate imposed on any country, including a 25 per cent levy in retaliation for India’s purchases of Russian oil.

India yet to respond

India’s trade ministry did not immediately respond to an emailed request for comment on Lutnick’s remarks, Reuters said.

The news agency also reported, citing an Indian government official involved in the talks, that New Delhi and Washington were very close to a deal last year, but a communication breakdown led to the collapse of the pact.

The episode highlights growing trade tensions between India and the United States, as Washington tightens its trade rules and uses tariffs more aggressively as a policy tool.

The US has increasingly linked trade access to broader geopolitical issues, including energy ties with Russia, while pressing partners to align with its sanctions and strategic priorities.

For India, which relies heavily on imported energy and maintains long-standing ties with Moscow, this has created friction in negotiations with Washington, complicating efforts to secure lower tariffs and preferential access to the US market.

Higher US tariffs make Indian exports less competitive, while American companies face challenges expanding in India. The lack of clarity is also weighing on investor sentiment, as markets look for stability in trade relations.