US Commerce Secretary Howard Lutnick has suggested that a major proposed trade agreement between the United States and India stalled because Indian Prime Minister Narendra Modi did not personally call then-President Donald Trump to finalize the deal.
Speaking on the All-In podcast, Lutnick said the agreement was largely ready but required direct engagement between the two leaders to be concluded.
“I set the deal up. But you had to have Modi call President Trump. They (India) were uncomfortable with it. So Modi didn’t call,” Lutnick said.
Lutnick claimed negotiations on the technical terms were mostly complete but argued that political leadership engagement was essential to close the pact. He suggested that Modi’s reluctance to place a direct call ultimately prevented the agreement from being finalized.
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According to Lutnick, the Trump administration had expected the India trade deal to be completed ahead of similar agreements with countries such as Indonesia, Vietnam, and the Philippines. He added that once those other nations moved forward, the terms initially offered to India were no longer available. Framing the issue in personal diplomatic terms, Lutnick said Trump typically finalizes such deals himself — and without Modi’s direct call, the opportunity was lost.
The India–U.S. trade deal under discussion for 2026 is a bilateral agreement aimed at expanding trade, reducing tariffs, and increasing market access for goods and services. Key sectors include textiles, pharmaceuticals, leather, and agricultural products. Negotiations began in 2025 and continued into early 2026, but progress has been uneven, with tariff disputes and disagreements over agricultural and dairy market access emerging as major sticking points.
The All-In podcast is a popular business and technology-focused show hosted by investors Chamath Palihapitiya, Jason Calacanis, David Sacks, and David Friedberg. The program frequently covers finance, venture capital, technology, policy, and political developments, often blending analysis with personal commentary.
The stalled U.S.–India trade talks highlight the complex interplay between technical negotiations and political leadership in international diplomacy. Even when economic and regulatory details appear largely resolved, personal engagement between heads of state can play a decisive role in moving agreements forward.
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In this case, it has been suggested that the absence of a direct call between the leaders proved critical — a claim that Indian officials have disputed. The situation also underscores the broader challenge of balancing national interests with global trade ambitions, as delays in one bilateral relationship can have ripple effects across other negotiations.
While the exact reasons for the stalled agreement remain contested between U.S. and Indian officials, the episode reflects a broader reality of global trade: even strategically significant deals can falter when political alignment or mutual confidence is lacking. It serves as a reminder that international trade negotiations are shaped as much by leadership dynamics and timing as by economic terms and legal frameworks.