Relations between Trump and Modi, once seen as warm, have cooled in recent months, with disagreements ranging from trade to India’s stance on mediation on its conflict with Pakistan, even as the two leaders continue to speak periodically by phone.
On Friday, India’s foreign ministry spokesperson Randhir Jaiswal said that both sides have been “close to a deal” on several occasions but they remain engaged in negotiations.
Delhi’s comments came after US Commerce Secretary Howard Lutnick claimed that the trade deal between the countries stalled because Modi did not call Trump.
“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 in a podcast released last week.
India said the categorisation of the discussions between Delhi and Washington was “not accurate”.
Meanwhile, Trump has also made several comments about India and Modi in recent days, including a warning that he would increase tariffs if Delhi does not stop buying Russian oil.
Separately, US Senator Lindsey Graham last week said that Trump had “greenlit” a punishing Russia sanctions bill that, if passed by Congress, would allow for even higher secondary tariffs and sanctions on countries doing business with Moscow.
Jaiswal said India was “aware of the proposed bill” and was “closely following developments”.
India became one of the biggest markets for Russian oil as Western nations shunned purchases and imposed sanctions on Moscow after Russian troops invaded Ukraine in 2022. Delhi had defended its decision, saying that it needed to think about the energy needs of its vast population.
But since the tariffs kicked in, oil refiners in India have reportedly been cutting their energy purchases from Moscow.
Even though India was among the first countries the US was negotiating a deal with, almost a year later, it is now among the last major economies yet to get a trade pact with the US.
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