PM Modi, Donald Trump hold ‘warm’ call amid trade deal buzz, strained India-US ties

According to an official statement, the two leaders assessed progress in the partnership and explored avenues to expand collaboration in trade, critical technologies, energy, defence and security.

They also “expressed satisfaction” with the strengthening of bilateral cooperation and “underlined the importance of sustaining momentum” in efforts to boost trade.

The statement highlighted their commitment to work closely to address challenges and advance shared interests under the India-US COMPACT framework — a 21st-century initiative aimed at accelerating military partnership, commerce and technology cooperation.

Modi later described the conversation on X as “warm and engaging”, noting that they discussed regional and global developments.

However, he made no mention of trade, a notable omission at a time when economic ties between the two nations have come under strain.

Relations between New Delhi and Washington have deteriorated in recent months after the US imposed a 25% tariff on India’s purchase of Russian oil, in addition to existing tariffs, a move that took effect on August 27.

India has repeatedly called the measures unfair, pointing out that China remains the biggest buyer of Russian crude and the EU continues to import significant volumes of LNG from Moscow.

Thursday’s call followed Russian President Vladimir Putin’s high-profile visit to India, which drew global attention not only for the defence and energy agreements signed, but also for the visibly warm personal rapport between Putin and Modi, including their much-discussed car ride from the airport to the PM’s residence.

Trump’s approach to India has drawn criticism at home, with several US lawmakers accusing him of alienating a key strategic partner.

One Democratic representative even held up the image of Modi and Putin sharing a car during a congressional speech, arguing that Trump’s actions were pushing India closer to Russia.

“Trump's policies towards India can only be described as cutting off our nose to spite our face,” Congresswoman Sydney Kamlager-Dove said, warning that they were causing “real and lasting damage” to the strategic trust between the two nations.