India's trade pact with the United ‍States stalled last year ‍because Prime Minister Narendra Modi did not make a telephone call to President ​Donald Trump ahead of a deal, Commerce Secretary Howard Lutnick said on Friday, giving an account of events that ⁠New Delhi has denied. Trade talks between India and the U.S. fell apart and Trump then doubled tariffs on ⁠Indian goods ‌in August to 50%, the world's highest rate, including a levy of 25% in retaliation for India's purchases of Russian oil.

"It's all set up and you have ⁠got to have Modi call the President. And they were uncomfortable doing it," Lutnick said in an interview on the All-In podcast, a U.S. show by four venture capitalists that focuses on business and technology.

"So Modi didn't call."

Responding to Lutnick's remarks, India's foreign ministry said the "characterisation of ⁠these discussions in the reported remarks is ​not accurate."

The two nations have been close to a deal on several occasions since the agreement to negotiate in February ‍last year, Indian foreign ministry spokesperson Randhir Jaiswal told reporters at a media briefing on Friday.

"Incidentally, Prime Minister and President Trump ​have also spoken on phone on eight occasions during 2025, covering different aspects of our wide-ranging partnership.” Lutnick's comments came after Trump stepped up the pressure for talks with a warning this week that tariffs could rise further unless India curbs its Russian oil imports. The failure to reach a deal has pushed the Indian rupee to a record low and spooked investors waiting for progress in two-way negotiations.

India is still seeking a tariff rate between Washington's offers to Britain and Vietnam that had formerly been agreed but the offer has expired, Lutnick added.

India's trade ministry did not respond to an e-mailed request for ⁠comment on Lutnick's remarks. New Delhi and Washington were very close ‌to a trade deal last year but a communication breakdown led to the collapse of any potential pact, Reuters reported.

It cited an Indian government official involved in the talks as saying that Modi ‌could not have ⁠called Trump, for fear that a one-sided conversation would put him on the spot.

(Reporting by Shivangi Acharya ⁠and Shivam Patel in New Delhi; Editing by Clarence Fernandez and Hugh Lawson)