Stalled Conversations: Trade Tensions Between India and the U.S.

India's trade deal with the U.S. fell through due to a communication issue involving a missed call between PM Modi and President Trump, escalating tariffs. Both nations remain at odds over tariffs, affecting economic relations and causing investor anxiety.

A potential trade pact between India and the United States crumbled last year when Prime Minister Narendra Modi reportedly did not make a crucial phone call to President Donald Trump, according to U.S. Commerce Secretary Howard Lutnick. India, however, has disputed this characterization of events.

Negotiation efforts between the two countries have been on and off since early last year, amidst a backdrop of increased tariffs. Despite several discussions between Modi and Trump, particularly on issues like Russian oil import tariffs, no formal agreement was finalized.

With the trade deal in limbo, economic challenges have arisen, including a record low for the Indian rupee. Investors are waiting for progress, though India's trade ministry has yet to respond to recent comments. The communication breakdown raises questions about diplomatic and economic strategies moving forward.

(With inputs from agencies.)