PM Modi and Trump Discuss Reviving India-US Trade

PM Modi and Trump: In a significant diplomatic outreach, Prime Minister Narendra Modi and US President Donald Trump held a wide-ranging phone discussion on Thursday, focusing on India-US trade cooperation, energy ties, defence collaboration, and emerging strategic technologies. As anticipation builds around a potential bilateral trade deal, the call highlighted renewed efforts from both sides to stabilise and strengthen a partnership strained in recent months.

According to an official statement, the two leaders reviewed ongoing progress across the India-US partnership and reiterated their commitment to deepening cooperation in key sectors. Trade featured prominently in the conversation, with both leaders agreeing on the need to “sustain momentum” in their efforts to boost bilateral commerce and resolve lingering disagreements.

The statement added that PM Modi and President Trump also explored avenues to expand collaboration in critical technologies, energy security, defence modernisation and broader security frameworks. These areas form the backbone of the India-US COMPACT—a strategic initiative aimed at reshaping military cooperation, fast-tracking commercial ties, and accelerating technological exchange for the 21st century.

Prime Minister Modi later described the interaction as “warm and engaging” in a post on X, noting that the two leaders reviewed bilateral progress and discussed key regional and global developments. “India and the US will continue to work together for global peace, stability and prosperity,” he wrote, though he refrained from directly mentioning trade.

PM Modi and Trump: Tense Backdrop Heightens Importance of the Call

The timing of the conversation is particularly noteworthy. Bilateral ties have been under stress following the US decision to impose a 25% penalty on India for its purchase of Russian oil, over and above existing tariffs. The move, which took effect on August 27, has drawn sharp criticism from New Delhi, which maintains that the punitive measures lack logic—especially since China remains the largest buyer of Russian crude, and the European Union continues to purchase significant quantities of Russian LNG.

Adding to the geopolitical context, the call took place shortly after Russian President Vladimir Putin’s high-profile visit to India. The optics of Putin and PM Modi carpooling from the airport sparked heated political commentary in the United States. Critics of the Trump administration argued that Washington’s hardline trade-related actions were driving India—one of America’s most critical strategic partners—closer to Moscow.

US Congresswoman Sydney Kamlager-Dove even presented a photo of Modi and Putin to underscore what she termed the “self-inflicted damage” of the current approach towards India. She argued that Trump’s policies risk eroding decades of painstakingly built strategic trust between New Delhi and Washington.

Trade Talks in Delhi Add to the Significance

The call also coincided with the presence of a US delegation in New Delhi for ongoing discussions on the bilateral trade agreement. Commerce Minister Piyush Goyal confirmed on Thursday that talks have been “substantive and positive,” but emphasised that neither side is rushing towards an artificial deadline.

“A deal is only done when both sides benefit. Negotiating against a deadline often leads to mistakes,” he said.

Responding to US Trade Representative Jamieson Greer’s remark that Washington had received its “best-ever offer” from India, Goyal urged the Trump administration to “sign on the dotted line” if that was the case.