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Modi-Trump Chat Over Phone: No Clarity On Trade Agreement

The talk comes against the backdrop of intense negotiations over a bilateral trade agreement and a recent U.S. decision to impose tariffs of up to 50 percent on key Indian exports.

The Modi-Trump phone conversation late on Thursday is the first since they spoke on Diwali. Modi was circumspect about the conversation. His post on X read: “We reviewed the progress in our bilateral relations and discussed regional and international developments. India and the U.S. will continue to work together for global peace, stability and prosperity.”

U.S. Ambassador to India, Sergio Gor, in his X post said: “A GREAT call between two friends. Prime Minister Narendra Modi reiterated his support for the President’s efforts to bring peace to Ukraine.”

There was no reference to the trade agreement although a media report said that foreign office consultations this week in Delhi covered bilateral issues including trade and investment. US sources referred to “concrete progress that enhances US security, jobs, and competitiveness while supporting India’s long-term goals.”

The sense is the US is seeking more concessions from India on agriculture although other reports said no negotiations are ongoing. But US officials have gone on record as saying that India has been “forward leaning” and offered more than ever before.

There was speculation that the conversation, coming a week after India and Russia sealed the logistics supply agreement, was an effort by Modi to signal that India was not “drifting” towards Russia as some US commentators have claimed.

Last week’s Modi-Putin summit went viral in Western capitals and combined with the logistics supply agreement, may have given an impression to some that India was returning to the Russian embrace.

“The fact is India needs the US for technology and capital,” Brig Arun Sahgal, (Retd) Director of the Forum for Security Initiatives. “India cannot afford to be in the Russian camp although it needs Russia to balance China. It does not want Russia to be playing second fiddle to Beijing.”

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