• The US Commerce Secretary claimed PM Modi's failure to call Trump caused trade deal delays.
• India rejects this narrative, pointing out ongoing negotiations and previous communications.
• Deep-rooted policy issues, especially on tariffs and agriculture, remain significant hurdles.
• The Global Trade Research Initiative emphasizes structural disagreements over personal diplomacy.
• Despite tariffs, India's exports to the US have seen an increase, indicating resilience in trade relations.

The stalled trade deal between India and the United States has recently been attributed to Prime Minister Narendra Modi's failure to make a phone call to US President Donald Trump, as stated by US Commerce Secretary Howard Lutnick. Lutnick explained that while negotiations were set for completion, the lack of a direct communication from Modi caused delays. Following this impasse, the US imposed a steep 50% tariff on Indian goods, which had contributed to rising tensions between the two nations, especially regarding India's purchase of Russian oil amidst the ongoing conflict in Ukraine, according to Indiatimes, BBC, and AA.

Despite Lutnick's assertions, the Indian government has formally pushed back against this characterization, asserting that the country has remained committed to the trade negotiations since February of last year. India’s foreign ministry spokesperson indicated that Modi had engaged with Trump in discussions covering various aspects of their partnership multiple times, emphasizing that the narrative suggested by Lutnick does not reflect the true status of the discussions, as noted by BBC and AA.

The Global Trade Research Initiative (GTRI) criticized Lutnick's remarks for oversimplifying the situation and diverting attention from underlying policy disagreements, particularly over tariffs, agriculture, and regulatory frameworks. They argued that structuring the impasse as reliant on a missed call fails to address the substantive issues affecting progress, further stating that negotiations have persisted past the timelines Lutnick mentioned, according to Indiatimes and AA.

Furthermore, despite the escalating tariffs, India’s exports to the US rose over 22% in the previous November, highlighting a complex yet resilient trading relationship. This suggests that while tariffs affect certain market dynamics, broader economic ties may endure despite political challenges associated with negotiations and external pressures like sanctions on Russia, as reported by BBC and Indiatimes.