India has rejected claims by US Commerce Secretary Howard Lutnick that trade talks between the two countries broke down because Prime Minister Narendra Modi did not call President Donald Trump.
The disagreement comes after Trump imposed steep 50% tariffs on Indian goods in August, including an added penalty for India’s purchases of Russian oil, following stalled negotiations.
Both countries have since returned to the negotiating table, but there is still no clear timeline for a deal. Several informal deadlines have passed, and major disagreements remain — especially over agriculture.
Washington has been pushing for greater access to India’s farm sector, while Delhi has consistently resisted any such move.
Despite this, Lutnick suggested the deal had been nearly finalised earlier this year.
“It was all set up. I said [to the Indian side] you got to have Modi call the president. They were uncomfortable doing it, so Modi didn’t call,” Lutnick said on a podcast released on Friday.
The White House has not commented on Lutnick’s remarks.
India, however, strongly disputed his version of events.
On Friday, foreign ministry spokesperson Randhir Jaiswal said Lutnick’s characterisation of the talks was “not accurate”.
“India and the US were committed to negotiating a bilateral trade agreement as far back as 13 February last year. Since then both 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,” Jaiswal told reporters.
He added that Modi and Trump spoke on the phone eight times last year, discussing “different aspects of our wide-ranging partnership”.
Speaking on the All-In Podcast, a business and technology show hosted by venture capitalists, Lutnick described Trump’s deal-making approach as a “staircase”, where “the first stair gets the best deal”.
He said India was the second country, after the UK, to enter trade negotiations with the US. According to Lutnick, Washington gave Delhi “three Fridays” to finalise the deal. While he said his job was to negotiate and structure agreements, the final step required Trump’s direct involvement — and India’s hesitation to arrange a call allegedly derailed the process.
Lutnick claimed the US then moved on to finalise agreements with other countries, including Indonesia and Vietnam.
“When India came back later saying they were ready to take the initial deal, the train had left the station,” he said.
However, what exactly India is said to have missed remains unclear. Agriculture continues to be a major sticking point, with Washington pushing for access to India’s protected farm sector — an issue Delhi has long treated as politically sensitive.
In December, US Trade Representative Jamieson Greer told senators that Washington had received the “best ever offer” from India, while also calling the country a “tough nut to crack”.
Trump has also made pointed remarks about India in recent weeks, warning of higher tariffs if Delhi does not stop buying Russian oil.
India significantly increased its purchases of discounted Russian crude after the Ukraine war began, arguing it needed to meet the energy demands of its massive population.
Since the tariffs came into force, Indian oil refiners have reportedly reduced their purchases from Russia.
Lutnick’s comments also follow remarks by US Senator Lindsey Graham, who said Trump had “greenlit” a tough Russia sanctions bill. If passed, the legislation could impose even harsher secondary tariffs and sanctions on countries doing business with Moscow.
Jaiswal said India was “aware of the proposed bill” and was “closely monitoring developments”, while reiterating Delhi’s stance on safeguarding its energy security.
Despite the 50% tariffs, India’s exports to the US rose by more than 22% in November compared with the same month last year.
Still, the tariffs and sharp public rhetoric have strained ties between the two countries. Modi, who once shared a warm relationship with Trump, was among the first global leaders to visit the White House after Trump’s inauguration.
Relations have cooled since then.
India has repeatedly denied Trump’s claims that he brokered a ceasefire between India and Pakistan following a four-day conflict in May. In June, Delhi said Modi told Trump that India would never accept third-party mediation on Kashmir.
The two leaders have spoken by phone several times since, including in September, when Trump called to wish Modi a happy birthday.
