Trade Talks Stalled: Modi's Pause Amid US Pressures

A trade pact delay between India and the United States was linked to Prime Minister Modi's avoidance of a direct call with President Trump, according to Commerce Secretary Howard Lutnick. The standoff escalated with tariff hikes and disrupted potential agreements, impacting India's economy and investor confidence.

India and the United States have hit an impasse in forming a trade deal due to Prime Minister Narendra Modi's decision against making a direct call to President Donald Trump, Commerce Secretary Howard Lutnick revealed.

The stalled negotiations, which faltered last year, resulted in Trump imposing a sharp increase in tariffs on Indian goods, citing retaliation for India's purchase of Russian oil. This has led to economic ripples, affecting India's economy and investor sentiment.

Lutnick's comments surfaced during an episode of the All-In podcast, where he expressed frustration over the missed communication, explaining that both sides had been close to an agreement. The stalled progress has placed pressure on India to negotiate tariff rates and address growing concerns over its energy policymaking.

(With inputs from agencies.)