New Delhi: Prime Minister Narendra Modi Thursday reviewed progress on trade talks with the US in a call with US President Donald Trump. The Prime Minister also welcomed the agreement brokered by Trump to find a way to end the hostilities in Gaza.
“Spoke to my friend, President Trump and congratulated him on the success of the historic Gaza peace plan. Also reviewed the good progress achieved in trade negotiations. Agreed to stay in close touch over the coming weeks,” Modi said in a statement on social media platform X.
This is the second call in the last month between the two leaders after almost three months of silence following a contentious discussion over the role of the US President in halting the conflict between India and Pakistan. The contentious call occurred in June 2025, while Modi was in Canada for the G7 summit.
The partial thaw between India and the US has picked up steam in the last few weeks after Trump wished Modi on the latter’s seventy-fifth birthday in September. That call paved the way for this one, that included discussions on trade. The next US Ambassador to India, Sergio Gor was also confirmed by the Senate earlier in the week and is expected to take up his assignment soon.
Ties between India and the US cratered following the June call, with Trump moving quickly to impose 50 per cent tariffs on Indian exports to the North American nation. The tariffs came into effect at the end of August. Trump has also embraced Pakistani leadership in the months following Operation Sindoor, by hosting Field Marshal Asim Munir for lunch at the White House. Last month, Trump also hosted Pakistani Prime Minister Shehbaz Sharif and Munir at the White House.
The growing ties between Islamabad and Washington D.C. was in stark contrast with the happenings between India and the US. Trump hit out at India on trade related issues, in particular the purchase of oil from Russia. Peter Navarro, the White House Counsellor on Trade, declared the ongoing Russia-Ukraine war as “Modi’s war”.
Spoke to my friend, President Trump and congratulated him on the success of the historic Gaza peace plan. Also reviewed the good progress achieved in trade negotiations. Agreed to stay in close touch over the coming weeks. @POTUS @realDonaldTrump
— Narendra Modi (@narendramodi) October 9, 2025
The US stepped up its tempo of actions which was perceived as sub-optimal for Indian interests including the imposition of $100,000 fee for H-1B visa hopefuls. Further, nearly 6,000 student visas were cancelled, which impacted some Indians who had overstayed their visas or faced criminal charges in the US.
Last month, the American government cancelled the sanctions waiver given to India to operate the port of Chabahar in Iran, further complicating New Delhi’s Central Asian policy and access to Afghanistan.
The main irritant in ties has been the lack of conclusion in negotiations for a trade deal between India and the US. The two leaders had announced their intention to complete the negotiations for the “first tranche” of a bilateral trade deal by the end of autumn 2025. However, negotiations have remained stuck over India’s clear red-lines—agricultural and dairy products.
Moreover, unlike other deals Trump announced this summer, which included investment components by third countries into the US, or complete removal of tariffs by some countries, India has focused on negotiating a mutually beneficial deal.
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