India firmly rejects Trump aide’s trade deal claims
India has firmly pushed back against remarks by US Commerce Secretary Howard Lutnick suggesting that trade talks between New Delhi and Washington stalled because Prime Minister Narendra Modi did not place a phone call to President Donald Trump. The Indian government described this characterisation as inaccurate, stressing that negotiations have been complex, ongoing, and driven by substantive policy differences rather than protocol or personal outreach.
The dispute comes at a sensitive moment in bilateral ties, months after the United States imposed steep tariffs on Indian goods. In August, the Trump administration slapped 50% tariffs on a range of Indian exports, including an additional penalty linked to India’s continued purchase of Russian oil. The move followed a slowdown in trade talks and marked a sharp escalation in economic pressure from Washington.
While both countries have since returned to the negotiating table, progress has been uneven. There is still no clear timeline for a final agreement, and several informal deadlines have passed without resolution. Officials on both sides acknowledge that key sticking points remain, most notably agriculture, where Washington has been pressing for greater access to India’s vast farm sector — a demand New Delhi has consistently resisted.
Lutnick, however, offered a different explanation during a podcast appearance released on Friday. He claimed that a deal had been close to completion but faltered because India was reluctant to arrange a direct phone call between Modi and Trump. “It was all set up,” Lutnick said. They were uncomfortable doing it, so Modi didn’t call.”
According to Lutnick, President Trump’s approach to deal-making resembled a “staircase,” where those who moved first received the best terms. When that window passed, he claimed, Washington moved on to finalising agreements with other countries, including Indonesia and Vietnam.
The White House has not commented publicly on Lutnick’s remarks. But India responded swiftly. Foreign ministry spokesperson Randhir Jaiswal told reporters that the description of events was misleading and failed to reflect the depth and continuity of negotiations between the two sides.
Jaiswal also addressed the suggestion that a lack of communication at the leadership level had stalled progress. He said Modi and Trump spoke by phone eight times last year, discussing a wide range of issues related to their partnership. The implication, Indian officials say, is that the talks did not collapse because of a missed call but because of unresolved policy differences.
One of the most sensitive issues remains agriculture. The US has long sought broader access to India’s tightly regulated farm market, arguing that it would benefit American exporters. India, however, has fiercely protected the sector, citing the livelihoods of millions of small farmers and the political and social risks of rapid liberalisation. Any significant concessions on agriculture are widely seen in New Delhi as a red line.
Despite the friction, US officials have at times sounded optimistic. In December, United States Trade Representative Jamieson Greer told senators that Washington had received the “best ever offer” from India, even as he described the country as a “tough.
Trade tensions have also been exacerbated by India’s energy relationship with Russia. After the Ukraine war began, India ramped up purchases of discounted Russian oil, arguing that it needed to secure affordable energy for its vast population. Trump has repeatedly warned that tariffs could rise further if India does not reduce those imports. Since the tariffs took effect, Indian refiners have reportedly begun cutting back on purchases from Moscow.
Lutnick’s comments also came days after US Senator Lindsey Graham said Trump had “greenlit” a tough Russia sanctions bill that could allow even higher secondary tariffs on countries doing business with Moscow. Jaiswal said India was aware of the proposed legislation and was closely monitoring developments, reiterating its long-standing position on energy security.
Ironically, despite the tariffs, India’s exports to the US jumped more than 22% in November compared with a year earlier. Still, the tariffs and the rhetoric surrounding them have strained a relationship that once appeared warm. Modi was among the first foreign leaders to visit the White House after Trump’s swearing-in, but ties have cooled since then.
India has also repeatedly rejected Trump’s claims that he mediated a ceasefire between India and Pakistan following a brief conflict in May. In June, New Delhi said Modi had clearly told Trump that India would never accept third-party mediation on Kashmir. Though the two leaders have spoken several times since — including a call in September when Trump wished Modi on his birthday — the tone of the relationship has noticeably shifted.
For now, both sides say they remain committed to a trade deal. But as negotiations drag on, the gap between political narratives and economic realities continues to test one of the world’s most consequential partnerships.