Global Edition
Global Edition
UK Edition
EU Edition
US Edition

Understand the story, not the spin.

Markets

US-India Trade Deal Stalled Over Missed Modi-Trump Call

Published 9 January 2026

U.S. Commerce Secretary Howard Lutnick stated that negotiations for a bilateral trade deal between the United States and India stalled last year because Prime Minister Narendra Modi failed to place a direct call to President Donald Trump, as revealed in a podcast interview published on Friday.

Lutnick, speaking on the All-In Podcast, described how the U.S. had allocated three specific Fridays in 2025 for India to finalize the agreement, ahead of deals signed with Vietnam and Indonesia in midyear. He said Indian officials were reluctant to arrange the call, which he viewed as essential to sealing the pact. "You got to have Modi call the president. And they were uncomfortable doing it," Lutnick recounted. "So Modi didn't call." He added that the favorable terms once on the table for India were no longer available, prompting the U.S. to advance agreements with other nations.

India's Ministry of External Affairs swiftly rejected Lutnick's account as inaccurate. Spokesperson Randhir Jaiswal told reporters in New Delhi that the two countries had engaged in multiple rounds of talks since February 13, 2025, aimed at a balanced and mutually beneficial agreement. "The characterization of...

Now playing
0:00 / 0:00