India has refuted claims made by the U.S. Commerce Secretary Howard Lutnick that a trade deal between India and the United States failed to materialize because Prime Minister Narendra Modi did not call former U.S. President Donald Trump.
According to the Ministry of External Affairs (MEA), Prime Minister Modi and President Trump spoke on eight occasions in 2025, addressing various aspects of the comprehensive partnership between the two countries. MEA spokesperson Randhir Jaiswal stated that the characterization of the negotiations in recent remarks was inaccurate. He added that India remains interested in a mutually beneficial trade deal between the two countries, which have complementary economies, and is looking forward to concluding it.
Lutnick's comments, made on the All-In Podcast, suggested that the trade deal was ready to be finalized but required direct engagement between the two leaders, which did not occur. He claimed that India was given a limited time frame to finalize the agreement but missed the deadline, leading the U.S. to pursue trade agreements with other Asian countries. He further stated that when India approached the U.S. three weeks later, the opportunity had passed.
Negotiations for a bilateral trade agreement between India and the U.S. have been ongoing since February 13 of last year. Since then, multiple rounds of discussions have been held with the goal of reaching a balanced and mutually beneficial trade pact. Both nations have engaged in parallel negotiations, aiming to develop a framework trade deal to address tariff issues and focus on a comprehensive trade agreement. The proposed agreement aims to more than double bilateral trade to $500 billion by 2030 from the current $191 billion.
The U.S. has been India's largest trading partner for four consecutive years, with bilateral trade reaching $131.84 billion in 2024-25, including $86.5 billion in Indian exports. The American market accounts for a significant portion of India's total goods exports, imports, and overall merchandise trade.
Earlier in 2025, the U.S. imposed additional tariffs on Indian imports, alleging that India's purchase of Russian oil was supporting Moscow's war efforts in Ukraine. These tariffs, along with previous ones, have resulted in a total tariff of 50% on Indian goods. India has described the U.S. action as unfair, unjustified, and unreasonable. Despite these challenges, both countries have expressed a commitment to continuing negotiations and resolving outstanding issues.
