India–US trade deal stalled as Modi did not reach out to Trump: Lutnick World
India–US trade deal stalled as Modi did not reach out to Trump: Lutnick World
In a Thursday interview on the All-In Podcast, Lutnick explained why the India–US trade deal has yet to materialise.
New York: US Commerce Secretary Howard Lutnick has claimed that the proposed trade deal between India and the United States failed to materialise because Prime Minister Narendra Modi did not personally call US President Donald Trump. Speaking on the All-In Podcast on Thursday, Lutnick explained the sequence of events that, according to him, led to the stalled agreement.
Lutnick said the US had first finalised a deal with the United Kingdom, making it clear that negotiations had a strict deadline. “We told the UK they had two Fridays to get it done because the train was going to leave the station,” he said, adding that President Trump approaches trade deals like a staircase, where the first country secures the most favourable terms. “You can’t get the best deal if you’re not first,” he noted, explaining that this method encourages countries to come to the negotiating table quickly.
After the UK deal, Lutnick recalled that Trump publicly mentioned India multiple times as a potential next partner. “We were talking to India, and we told them, ‘You have three Fridays. You have to get it done,’” he said.
Lutnick emphasised that while he negotiated the technical aspects of agreements, the final decision rested with Trump. “It’s his deal. He’s the closer,” he said, adding that he had told Indian officials the deal was ready but required a direct call between Modi and Trump. “They were uncomfortable doing it, so Modi didn’t call,” Lutnick claimed.
Following the missed deadline, the US went on to announce trade deals with Indonesia, the Philippines and Vietnam. Lutnick said Washington had assumed India’s deal would be concluded ahead of these countries, but negotiations with others progressed faster and at higher tariff rates. “Then India came back weeks later saying they were ready,” he said. “I told them, ‘Ready for what? The train left the station three weeks ago.’”
Using a seesaw analogy, Lutnick said India had ended up “on the wrong side” as other countries moved ahead in the queue. He added that while he had intended for the India deal to fall between the UK and Vietnam agreements, circumstances had changed. “They say, ‘But you agreed,’ and I say, ‘Then, not now,’” he remarked.
Lutnick expressed confidence that India would eventually work things out, but noted that domestic political processes and parliamentary approvals make such deals highly complex. His comments come days after President Trump said Modi was aware of his dissatisfaction with India’s continued purchases of Russian oil and warned that tariffs on Indian goods could be raised “very quickly.”
The remarks were made amid ongoing negotiations for a bilateral trade agreement between the two countries. So far, six rounds of talks have been held, with the proposed pact including a framework to address the 50 per cent tariffs imposed on Indian goods entering the US.