Ministry of External Affairs (MEA) on Friday dismissed claims by US Commerce Secretary Howard Lutnick that a proposed India–US trade deal failed because Prime Minister Narendra Modi did not directly call US President Donald Trump.
The ministry also said it was monitoring a proposed US legislation seeking to impose 500% tariffs and secondary sanctions on countries importing Russian energy — a move that could place India in Washington’s crosshairs after Trump appeared to give it the green light.
Reacting to Lutnick’s remarks, MEA spokesperson Randhir Jaiswal said the “characterisation of discussions in reported remarks not accurate”, adding that Prime Minister Narendra Modi had spoken to President Trump by phone on eight occasions in 2025.
Jaiswal said that India was close to a trade deal on several occasions and that it "remains interested in a mutually beneficial" pact with the US.
Speaking on a podcast, Lutnick said India had been given a narrow window — “three Fridays” — to conclude the trade talks and that, while officials had largely agreed on a framework, a direct intervention at the leaders’ level was needed to finalise the deal.
“I said, ‘You’ve got to have Modi call the President. It’s all set up,’” Lutnick said, adding that New Delhi was uncomfortable with such a call.
“So Modi didn’t call.”
He said India later indicated it was ready to proceed, but by then the opportunity had passed. “I said, ‘Are you ready for the train that left the station three weeks ago?’” he said, adding that “as other countries kept doing deals, India just went further back in the line.”
Lutnick's remarks came days after Trump claimed Modi was aware of his unhappiness over India’s purchases of Russian oil and warned that Washington could raise tariffs on New Delhi “very quickly.”
Meanwhile, speaking on the proposed legislation in US Congress seeking 500% tariffs for countries trading with Russia, Jaiswal said, “We are fully aware of the proposed bill being discussed, and we are carefully monitoring all related issues and developments connected with it.”
"At the same time, I would like to say that, as far as energy sources are concerned, you are well aware of our approach. We take into account the conditions and environment in the global market, while also keeping in mind our imperative of ensuring that energy is made available at affordable prices to our 1.4 billion people. Based on these factors, we determine our strategy and policy," Jaiswal added.
The bipartisan legislation, titled the Sanctioning Russia Act of 2025, has been spearheaded by Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal. It would authorise the US to levy punitive tariffs and secondary sanctions on countries — including India and China — that continue to purchase Russian oil, gas, uranium and other exports.
A White House official has now confirmed that the president supports the sanctions legislation. The White House had previously insisted on revisions to the sanctions package, including greater flexibility for Trump, though the official on Wednesday did not say whether any changes had been secured.
Senator Graham said the bill could be put to a vote as early as next week, though its prospects in Congress remain uncertain.
Any decision by Washington to enforce such secondary sanctions could further strain India–US relations, which have deepened in recent years across trade, defence and strategic cooperation.
However, ties have faced turbulence in 2025, as trade disputes, immigration restrictions and geopolitical tensions have tested the relationship in ways not seen for decades.