MEA rejects Lutnick’s trade claim, says PM Modi and Trump spoke eight times in 2025

The Ministry of External Affairs on Friday rejected claims by US Commerce Secretary Howard Lutnick that negotiations on an India–US trade agreement stalled because Prime Minister Narendra Modi did not personally call US President Donald Trump to finalise the deal. The remarks come as the Trump administration is planning to impose a 500 per cent tariff on countries that purchase and resell Russian oil, a move that could affect India’s crude oil imports.

Addressing a weekly media briefing, Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal said “The characterisation of these discussions in the reported remarks is not accurate. We remain interested in a mutually beneficial trade deal between two complementary economies and look forward to finalise 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”.

He also underscored that ongoing engagement between New Delhi and Washington should not be viewed through isolated remarks, noting that dialogue at multiple levels has continued despite differences. The spokesperson said both sides have maintained regular communication to address outstanding issues and advance cooperation across sectors, including trade, energy, and strategic interests.

“India and the US were committed to negotiating a bilateral trade agreement with the US since 13 February, 2025. Since then, the two sides have held multiple rounds of negotiation to arrive at a balanced and mutually beneficial trade agreement. On several occasions, we have been close to a deal,” He added.

Energy Security at the Core of India’s Policy

The Ministry of External Affairs on Friday also addressed a proposed bipartisan bill in the United States Congress that seeks to impose 500 per cent tariffs on countries continuing to purchase Russian oil. The proposed legislation, which has been publicly backed by US President Donald Trump, is being projected as part of a broader sanctions framework aimed at curbing Moscow’s war economy.

“India is fully aware of the proposed legislation and is closely tracking the developments related to it, Emphasising that New Delhi’s decisions in the energy sector were guided by pragmatic considerations rather than external political pressures. Prime Minister Narendra Modi and President Trump share a cordial relationship and have consistently engaged with each other with mutual respect, in line with established diplomatic norms,” MEA spokesperson said.

India has significantly increased imports of discounted Russian crude since the outbreak of the Ukraine conflict, a move New Delhi has consistently defended as an economic necessity rather than a political alignment.

Trade Talks Continue Amid Tariff Tensions

While India and the US have yet to finalise a Free Trade Agreement (FTA), talks have continued through multiple official and sector-level negotiations over the past year. Key sticking points include agricultural tariffs, market access, and Washington’s recent tariff increases on Indian goods. According to official data, US goods exports to India stood at approximately $41.5 billion in 2024, while imports from India were valued at around $87.3 billion, reflecting the scale and complexity of bilateral trade relations.

Lutnick’s comments were made during an appearance on the ‘All In’ podcast, where he claimed he personally requested Prime Minister Modi to call President Trump to finalise the deal, However, he said India was “uncomfortable” doing it, “so Modi didn’t call”.

Now india is calling back to negotiate after trade agreements were finalised with countries such as Indonesia, Vietnam, and the Philippines.So now the problem is the deals came out at a higher rate, He said.

India has not responded directly to the podcast remarks but reiterated that trade negotiations are conducted through formal institutional channels rather than individual political gestures.

Diplomatic Tone Remains Measured

Despite public friction over tariffs and energy policy, New Delhi’s response remained measured, signalling continued engagement rather than confrontation. “We remain interested in a mutually beneficial trade deal and look forward to concluding it,” Jaiswal said, reaffirming India’s commitment to dialogue.

As geopolitical pressures intensify and economic nationalism rises globally, India’s stance reflects a balancing act , defending strategic autonomy while keeping diplomatic doors open with Washington.

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Shoaibur Rahman

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