Responding to Lutnick’s comments during a weekly media briefing on Friday, January 9, 2026, MEA spokesperson Randhir Jaiswal clarified that there is no lack of communication at the highest levels.
- Frequent Dialogue: Jaiswal revealed that PM Modi and President Trump have spoken on the phone eight times throughout 2025, discussing various facets of the “wide-ranging partnership.”
- Negotiation History: The MEA noted that both nations have been committed to a bilateral trade agreement since early last year, holding multiple rounds of intense negotiations to reach a balanced deal.
- Near Success: Contrary to the narrative of a “stalled” process, the spokesperson highlighted that the two sides have actually been “close to a deal” on several occasions.
The Context: Lutnick’s “Staircase” Comments
The diplomatic friction follows Howard Lutnick’s recent appearance on the All-In Podcast, where he suggested that India missed a critical window for a trade deal because the Indian side was “uncomfortable” with a direct leadership call to “close” the arrangement.
Lutnick used a “staircase” metaphor, explaining that the Trump administration offers the best terms to the first movers. He claimed that because PM Modi did not place the requested call by a specific “Friday” deadline, the U.S. moved on to finalize agreements with other nations like Indonesia, Vietnam, and the Philippines, leaving India at a disadvantageous tariff position.
“The characterization of these discussions in the reported remarks is not accurate. We remain interested in a mutually beneficial trade deal… and look forward to concluding it.” — Randhir Jaiswal, MEA Spokesperson
Current State of Trade Ties
Despite the verbal sparring, the MEA maintained that India remains open to concluding a deal that serves both “complementary economies.” However, the relationship faces immediate challenges:
- High Tariffs: Indian exports are currently grappling with a 50% tariff rate imposed by the U.S.
- Russian Oil Sanctions: New Delhi is also monitoring a proposed U.S. bill that could impose up to 500% tariffs on countries purchasing Russian energy.
The MEA reiterated that India’s energy sourcing is guided by the necessity of securing affordable energy for its 1.4 billion people, signaling that while trade remains a priority, strategic autonomy on energy will not be compromised.
