Union Commerce Minister Piyush Goyal called on citizens to "have trust in India," emphasizing that the government would only sign a trade deal that protects national interests. His remarks followed a public rebuttal by the Ministry of External Affairs (MEA) regarding claims that a bilateral trade agreement with the U.S. stalled due to a lack of personal communication from Prime Minister Narendra Modi.
The Controversy
US Claims: U.S. Commerce Secretary Howard Lutnick claimed in a podcast released on January 8, 2026, that a trade deal was "all set up" between May and July 2025 but failed because PM Modi did not make a decisive phone call to President Donald Trump within a specified three-week window.
India’s Rejection: On January 9, 2026, MEA spokesperson Randhir Jaiswal dismissed these claims as "not accurate". He noted that the two leaders had actually spoken on the phone eight times in 2025.
Status of Trade Negotiations (as of January 2026)
Core Issues: Negotiations remain complex, involving significant disagreements over agricultural market access (specifically U.S. soybeans and corn), dairy imports, and reciprocal tariffs.
Tariff Pressure: The U.S. imposed 50% tariffs on Indian goods in August 2025, partly as leverage regarding India's purchase of Russian oil. Recent U.S. legislative discussions have even threatened punitive tariffs of up to 500%.
Minister Goyal’s Stance: Goyal reiterated that India will not negotiate "with a gun to its head" or under arbitrary deadlines. He assured that while the first tranche of a deal was expected by November 2025, talks are ongoing and aimed at a "balanced and mutually beneficial" outcome.
Diversification: Amid the U.S. stalemate, India has accelerated other trade pacts, recently operationalizing deals with the UK and seeking new markets in the EU, Mexico, and Chile.
