New Delhi, December 11:
Amid growing speculation over an impending trade agreement between India and the United States, Prime Minister Narendra Modi and US President Donald Trump held a phone conversation on Thursday, reviewing the state of bilateral ties and signalling intent to deepen cooperation across critical sectors.
A statement issued after the call said the two leaders “reviewed progress in the India-US partnership” and discussed expanding collaboration in key areas, including trade, critical technologies, energy, defence and security. Both sides, it added, underlined the importance of maintaining momentum in efforts to boost bilateral commerce — an area that has come under strain in recent months.
The statement stressed that PM Modi and President Trump “expressed satisfaction at the strengthening of bilateral cooperation across sectors” and agreed to work closely to address shared challenges and advance common strategic interests. It also noted that the discussion touched upon priority areas central to the implementation of the India-US COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce & Technology) framework — the overarching plan guiding defence and technological cooperation in the 21st century.
Prime Minister Modi later described the interaction as “warm and engaging” in a post on X, where he wrote, “We reviewed the progress in our bilateral relations and discussed regional and international developments. India and the US will continue to work together for global peace, stability and prosperity.” The Prime Minister did not specifically mention trade in his social media post, even as discussions on a trade pact continue in Delhi.
Backdrop: Strained Ties Over Tariffs
The phone call comes at a sensitive moment in India-US relations, which have seen notable friction since Washington announced a 25% additional penalty on India’s purchase of Russian oil, on top of existing 25% tariffs. The measures, unveiled in July and enforced on August 27, triggered pushback from New Delhi, which has termed the tariffs “unfair” and questioned their rationale.
Indian officials have repeatedly pointed out that China remains the largest buyer of Russian crude, while the European Union purchases the most Russian LNG — raising questions about why India was singled out for punitive measures.
Putin Visit Raises Temperature In Washington
The diplomatic temperature rose further following Russian President Vladimir Putin’s high-profile visit to New Delhi this week. While the trip saw a series of agreements signed, global attention was drawn to the public display of camaraderie between Putin and PM Modi — including visuals of the two leaders sharing a car during transit from the airport to the Prime Minister’s residence.
In Washington, critics seized upon the optics. A US Democratic lawmaker, Sydney Kamlager-Dove, held up the photograph of Modi and Putin riding together during a session of Congress as she delivered a scathing critique of the Trump administration’s handling of India.
“Trump’s policies toward India can only be described as cutting off our nose to spite our face,” she said, warning that the approach was causing “real and lasting damage” to strategic trust between the two countries. Several US leaders have argued that Trump’s tariff decisions have inadvertently pushed India closer to Moscow — undermining a partnership Washington has long considered central to its Indo-Pacific strategy.
Trade Talks Gain Urgency
The timing of the Modi–Trump phone call is also significant as a high-level US delegation is currently in New Delhi negotiating the proposed bilateral trade agreement. A deal has been anticipated for months, though both sides remain cautious about forecasting a conclusion.
Commerce Minister Piyush Goyal confirmed on Thursday that talks were “very good” and “substantive”, but emphasised that New Delhi would not rush into an agreement.
“A deal is only done when both sides stand to benefit,” he said. “We should never negotiate with deadlines because you tend to make mistakes then.”
Reacting to comments from US Trade Representative Jamieson Greer — who said the US had received its “best-ever offer” from India — Goyal remarked that if Washington believes the terms are favourable, the Trump administration should “sign on the dotted line.”
What Comes Next
With tariffs, Russia-related tensions and trade negotiations converging, Thursday’s call is seen by observers as a calibrated attempt by both sides to steady the relationship. While the official readout underscored alignment on defence, technology and global security, the real test will lie in the outcome of the ongoing trade talks — a breakthrough that could reset the tone of one of the world’s most consequential partnerships.
