By Khabar Rojana 
US Commerce Secretary Howard Lutnick has revealed that a proposed India-US trade deal failed because Prime Minister Narendra Modi did not personally call US President Donald Trump after the agreement framework had been prepared. According to Lutnick, the delay caused Washington to move ahead with other trade partners, leaving India behind in the negotiation queue.
Speaking on the All-In podcast on January 9, Lutnick said that negotiators from both countries had reached a preliminary understanding. However, the deal stalled when the expected political-level communication never happened.
“The deal was all set up. Modi had to call the President. They were uncomfortable doing it, so Modi didn’t call,” Lutnick said.
He added that Indian negotiators later returned to finalize the agreement, but by then the US had already renegotiated terms with other countries.
Lutnick described former President Trump’s deal-making approach as a “staircase model”, where early movers receive better trade terms. Countries that delay face tougher conditions as subsequent deals raise the benchmark.
The US had already finalized agreements with the UK, Vietnam, Indonesia, and the Philippines, pushing the negotiation bar higher. When India attempted to re-enter talks weeks later, the earlier terms were no longer available.
“Are you ready for the train that left the station three weeks ago?” Lutnick recalled telling Indian negotiators.
The remarks come amid growing trade pressure on India. US Senator Lindsey Graham recently stated that President Trump had approved a proposed Russia sanctions bill that could impose 500% tariffs on countries importing Russian oil. India is already facing tariffs of up to 50% on certain exports to the US, impacting trade volumes and investor confidence.
Lutnick noted that India ended up “on the wrong side of the seesaw” as multiple countries moved faster to secure favorable agreements.
According to Lutnick, the expectation was for top leadership engagement to finalize the agreement. Without that final step, the deal stalled, allowing other countries to move ahead.
“It was his deal to close. You needed Modi to call,” he emphasized.
The episode highlights how timing, political signaling, and diplomatic engagement played a decisive role in shaping the outcome of high-stakes trade negotiations between India and the United States.
Shalu Shalu