India's Ministry of External Affairs has categorically rejected US Commerce Secretary Howard Lutnick's recent characterisation of trade discussions between India and the United States, terming his portrayal as "not accurate" during a press briefing on Friday.

MEA Response to Lutnick's Claims

The strong response from India's foreign ministry came after Lutnick publicly blamed Prime Minister Narendra Modi for the delay in finalising the India-US trade deal. The US Commerce Secretary had claimed that Modi had "failed" to call US President Donald Trump, suggesting this was a factor in the stalled negotiations.

MEA spokesperson Randhir Jaiswal addressed these remarks directly, stating that the ministry has noted Lutnick's recent comments but disagreed with his assessment. "The characterisation of these discussions in the reported remarks is not accurate," Jaiswal emphasised during the briefing.

Trade Deal Progress and Communications

Contrary to Lutnick's assertions, Jaiswal revealed that India and the United States were close to reaching a trade agreement on "several occasions" during the previous year. This contradicts the narrative that lack of communication or engagement from India's side was responsible for the delays.

The MEA spokesperson also provided specific details about the frequency of high-level communications between the two leaders:

Diplomatic Implications

The public disagreement between the two sides highlights the complexities involved in finalising the comprehensive trade agreement between the world's largest democracies. While both nations have expressed interest in strengthening economic ties, the characterisation of negotiations and the reasons for delays appear to be points of contention.

The MEA's measured but firm response indicates India's commitment to setting the record straight on diplomatic engagements while maintaining the overall framework of India-US relations. The clarification on the frequency of Modi-Trump communications directly challenges Lutnick's narrative about insufficient engagement from India's leadership.

This development remains a continuing story as both nations work toward finalising their trade relationship amid differing public narratives about the negotiation process.

The much-anticipated India-US trade deal has hit a roadblock due to a communication gap between the two nations' top leaders, according to US Commerce Secretary Howard Lutnick. In a recent interview on the All-In podcast with Chamath Palihapitiya, Lutnick provided insights into why the bilateral trade agreement has yet to materialise despite significant groundwork.

Communication Breakdown Stalls Progress

Lutnick explained that the deal's completion required direct communication between Prime Minister Narendra Modi and US President Donald Trump. "I set the deal up. But you had to have Modi call President Trump. India was uncomfortable with it. So Modi didn't call," Lutnick stated during the podcast interview.

The Commerce Secretary's comments suggest that the trade negotiations had reached a critical juncture where high-level political engagement was necessary to finalise the agreement. However, India's apparent reluctance to initiate this direct communication channel between the leaders created an impasse.

US Moves Forward with Alternative Partners

Following India's hesitation, the United States proceeded with its structured approach to trade negotiations, which Lutnick described as a "staircase structure on the rates." The US redirected its focus to other Asian markets, successfully advancing trade discussions with several countries:

This strategic pivot allowed the US to maintain momentum in its regional trade agenda while India remained on the sidelines.

India's Late Re-engagement

According to Lutnick, India attempted to re-enter negotiations after a three-week gap. However, the delay had consequences for the terms of engagement. The Commerce Secretary hinted that the negotiation rates had become "difficult" due to India's position in the revised sequence of trade discussions.

The timing of India's return to the negotiating table placed the country at a disadvantage, as the US had already moved forward with its systematic approach to regional trade agreements.

Expert Perspectives on Future Prospects

Foreign affairs expert Fareed Zakaria had previously indicated in an exclusive conversation with NDTV that an India-US trade deal remained possible. Zakaria emphasised that successful closure would depend on agreement between the "two strong leaders" from both nations, highlighting the importance of direct engagement between Modi and Trump.

The expert's assessment aligns with Lutnick's revelation about the critical role of leader-to-leader communication in finalising the trade agreement.

Implications for Bilateral Relations

The Commerce Secretary's disclosure provides rare insight into the behind-the-scenes dynamics of high-stakes international trade negotiations. It underscores how diplomatic protocols and communication preferences can significantly impact economic agreements between major economies.

The situation illustrates the complex interplay between political relationships and trade policy, where personal interactions between leaders often determine the success or failure of substantial economic partnerships.

Source: https://www.ndtvprofit.com/world/india-us-trade-deal-isnt-done-because-us-commerce-secretary-explains-reason-involving-pm-modi