Modi, Trump Hold Call As India–US Move Closer To Long-Pending Trade Deal

Prime Minister Narendra Modi and US President Donald Trump spoke on Thursday in a call aimed at keeping economic engagement on track, even as both sides work to finalise a long-pending trade agreement. The conversation came as Indian and American officials wrapped up two days of negotiations on the proposed deal, which is expected to ease the Trump administration’s steep 50 per cent tariffs on Indian exports, according to PTI.

In a brief social media post, Modi described the conversation as “warm and engaging”, saying the two leaders “reviewed the progress in our bilateral relations and discussed regional and international developments”. He added that India and the US “will continue to work together for global peace, stability and prosperity”. Trump did not mention trade either, but officials familiar with the call said the subject remained central to the discussion.

The latest outreach follows months of strain. Ties between New Delhi and Washington deteriorated after Trump doubled tariffs on Indian goods in August, pushing duties to 50 per cent, including an additional 25 per cent linked to India’s purchase of Russian crude oil. PTI reported that criticism of New Delhi by senior officials in the Trump administration further deepened the political chill.

Still, both governments have been attempting to repair the relationship in recent weeks. Negotiators concluded talks on the draft agreement on Wednesday night, with US Trade Representative Jamieson Greer saying the US had received its “best” ever offers from India—though he declined to give details. Modi and Trump had last spoken in October.

Indian officials said the two leaders reviewed the “steady progress” in the comprehensive global strategic partnership and discussed expanding cooperation in trade, critical technologies, energy, defence and security. They noted that both sides expressed satisfaction at the “steady strengthening” of bilateral cooperation across sectors and emphasised the need to maintain momentum on trade. The discussion also touched on areas central to the India-US COMPACT framework for military partnership, accelerated commerce and technology.

The leaders also exchanged assessments on regional and global developments and agreed to work closely to address shared challenges and common interests, PTI reported.

The call unfolded against the backdrop of US pressure on India to scale back purchases of Russian crude. Washington argues that Moscow is using oil revenue to fund its war in Ukraine. India, which turned to discounted Russian oil after Western sanctions pushed other buyers away in 2022, saw Russian supplies rise from 1.7 per cent of its total imports in 2019–20 to 35.1 per cent in 2024–25, making Russia its largest supplier. In recent weeks, India’s intake has dipped after US sanctions on two major Russian oil companies.

Officials on both sides indicated that a clearer pathway on trade and energy cooperation may emerge in the coming weeks as negotiations continue.

(With inputs from PTI)