India Refutes Claims of Trade Agreement Stalemate Due to Modi's Lack of Call to Trump

India Responds to American Official's Statements

India has refuted claims made by U.S. Commerce Secretary Howard Lutnick, who suggested that the trade agreement between the two countries has stalled because Prime Minister Narendra Modi did not call President Donald Trump. This statement follows Trump's imposition of a 50% tariff on Indian products in August, which included penalties for the purchase of Russian oil after negotiations reached an impasse.

Both parties are still engaged in negotiations, but there is no clarity on when the agreement will be finalized, with several informal deadlines already passed. Key issues remain, such as access to the Indian agricultural sector, which Delhi has firmly protected.

In a podcast, Lutnick stated, "Everything was prepared. I told [the Indian side] that a phone conversation between Modi and the President was necessary. They were uncomfortable with that, so Modi did not call." The White House has yet to comment on Lutnick's statements. However, India conveyed on Friday that the characterization of discussions between Delhi and Washington is inaccurate.

“India and the U.S. have committed to negotiating a bilateral trade agreement since February last year. Since then, both parties have engaged in numerous rounds of negotiations to arrive at a balanced and mutually beneficial agreement,” said Randhir Jaiswal, spokesperson for the Ministry of External Affairs. He added that Modi and Trump had eight phone conversations last year, addressing various aspects of their expanded partnership.

Constraints remain, and Lutnick's assertions come shortly after U.S. Senator Lindsey Graham stated that Trump approved a sanctions bill against Russia that, if passed by Congress, would allow for additional tariffs on countries collaborating with Moscow. Jaiswal confirmed on Friday that India is "aware of the proposed bill" and is closely monitoring developments, reiterating the need to address the energy requirements of its population.

Despite the 50% tariffs, Indian exports to the U.S. increased by over 22% in November compared to the previous year, suggesting that the relationship between India and the U.S. remains complex and influenced by current divergences.