Remember when US-India trade relations were supposed to soar? A major deal was on the table, promising to boost economic ties significantly. But according to a surprising claim from former US Commerce Secretary Howard Lutnick, a crucial phone call—or the lack thereof—might have brought it all to a standstill.
Speaking on the popular “All-In podcast,” Lutnick asserted that a planned India-US trade agreement was “all set up,” requiring just one thing: a call from then-Indian Prime Minister Narendra Modi to President Donald Trump. “They were uncomfortable doing it. So Modi didn’t call,” Lutnick stated, painting a picture of a deal hanging by a thread, waiting for a simple diplomatic gesture.
India, however, quickly pushed back. The Indian foreign office firmly stated that Lutnick’s “characterization of these discussions… is not accurate,” suggesting a different narrative entirely. This diplomatic spat adds another chapter to already rocky bilateral trade relations.
Prior to this incident, trade talks between Washington and New Delhi had already collapsed. Tensions escalated further when the Trump administration, in an aggressive move, doubled tariffs on Indian goods, with some rates hitting an unprecedented 50%. A significant part of this, a 25% levy, was directly imposed as retaliation for India’s ongoing purchases of Russian oil, creating substantial friction.
This current impasse is a sharp departure from earlier, more optimistic visions. Both countries had once shared an ambitious goal: to nearly double bilateral trade to a staggering $500 billion by 2030. Yet, with lingering disagreements over issues like India’s energy sourcing and the tit-for-tat tariff battles, achieving that grand objective now seems more challenging than ever. It just goes to show how complex global diplomacy can be, where even an unmade phone call can reportedly cast a long shadow over multi-billion-dollar deals.
