New Delhi/Washington
US Commerce Secretary Howard Lutnick said the negotiations stalled because Prime Minister Narendra Modi did not place a phone call to President Trump ahead of finalising a deal. Speaking on the All-In podcast, Lutnick claimed the agreement was ready but failed due to what he described as New Delhi’s reluctance to initiate the call.
India has firmly rejected that version. The foreign ministry said Lutnick’s remarks were “not accurate,” adding that the two sides had come close to a deal several times since talks began in February last year. Spokesperson Randhir Jaiswal noted that Modi and Trump spoke by phone eight times in 2025 on various aspects of the bilateral relationship.
After the talks fell apart, Trump raised tariffs on Indian goods in August, including a 25% levy imposed in retaliation for India’s continued purchases of Russian oil. This week, Trump warned tariffs could rise further unless New Delhi cuts those imports.
The stalled negotiations have weighed on investor sentiment and pushed the Indian rupee to record lows. India is still seeking tariff terms comparable to recent US agreements with Britain and Vietnam, though Washington says that earlier offer has since expired
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