India rejects US commerce secretary's claim about trade deal breakdown
What's the story
India has rejected the claim made by United States Commerce Secretary Howard Lutnick that Prime Minister Narendra Modi's refusal to directly engage President Donald Trump was a key reason behind the stalled India-US trade deal. External Affairs Ministry Spokesperson Randhir Jaiswal said on Friday, "We have seen the remarks... The characterization of these discussions in the reported remarks is not accurate."
Statement
Trump, Modi spoke 8 times
"We remain interested in a mutually beneficial trade deal between two complementary economies and look forward to concluding it." "Incidentally, Prime Minister and President Trump have also spoken on phone on 8 occasions during 2025, covering different aspects of our wide-ranging partnership," MEA spokesperson Jaiswal said during a media briefing in New Delhi.
Ongoing talks
India-US trade deal negotiations underway since February 2022
Jaiswal emphasized that both countries have been engaged in talks for a balanced trade agreement since February 13, 2025. "Since then, the two sides have held multiple rounds of negotiations to arrive at a balanced and mutually beneficial trade agreement. On several occasions, we have been close to a deal. The characterization of these discussions in the reported remarks is not accurate," he said.
Trade deal
Lutnick's remarks on Modi-Trump communication
Lutnick had earlier said that the India-US Bilateral Trade Agreement (BTA) was stalled because Modi did not personally call Trump to finalize it. "It's all set up, but I said I gotta have Modi call the President...they were uncomfortable doing it, so Modi didn't call." He added they were very close to a deal but India was "on the wrong side of the seesaw."
Diplomatic tensions
Strained India-US ties amid trade deal negotiations
The remarks came after Trump hinted at increasing tariffs on India over oil trade with Russia. "Modi is a...good guy and he knew I was not happy. And it was important to make me happy. We can raise tariffs...very quickly," Trump said. Trump imposed 25% tariffs on India over oil trade with Moscow, in addition to 25% reciprocal tariffs, taking the total to 50%.