NEW DELHI, Sept. 30
Prime Minister Narendra Modi and US President Donald Trump reviewed trade, defence, energy and critical technology cooperation in a telephone conversation on Wednesday, as New Delhi and Washington navigate differences over tariffs, Russian energy purchases and a still-pending bilateral trade agreement.
The conversation took place less than two weeks after Trump signed legislation allowing the United States to impose tariffs of up to 100 per cent on countries buying Russian oil and gas, potentially exposing India to fresh economic measures.
“Had a productive conversation with President Trump. We reviewed our bilateral cooperation in trade, defence, energy, critical technologies and other areas,” Modi said after the call.
“We agreed to maintain close engagement to take our Comprehensive Global Strategic Partnership forward,” he added.
Government officials described the conversation as reflecting the breadth of India-US ties and the importance of maintaining direct contact between the leadership of the two countries. They said New Delhi had conveyed its concerns to Washington in recent weeks, including over tariffs and possible sanctions.
The two leaders also exchanged views on regional and international developments, including the conflicts in West Asia and Ukraine, and discussed efforts related to global peace and security.
The call took place against a more difficult backdrop in India-US relations than the broad strategic cooperation between the two countries might suggest.
A central concern for New Delhi is the Lindsey O Graham Sanctioning Russia and Iran Act of 2026, or SRIA, which Trump signed into law on September 18.
The legislation authorises the US president to impose tariffs of up to 100 per cent on countries purchasing Russian oil and gas, including India and China.
India has said it will take steps necessary to protect its economic interests and energy security. New Delhi has also warned that sanctions could affect the broader India-US relationship.
India’s concerns over the legislation have already been raised through diplomatic channels.
External Affairs Minister S Jaishankar met US Secretary of State Marco Rubio in New York on September 23, when the two discussed possible sanctions against countries maintaining economic relations with Russia and Iran.
Jaishankar reiterated India’s concerns and interests regarding the legislation. Rubio, according to the account of the meeting, said the United States remained well positioned to help regional partners address their energy-security requirements.
Foreign Secretary Vikram Misri subsequently met US Undersecretary of State for Political Affairs Allison Hooker in New York on September 25.
Their discussions included energy security, the new sanctions law, civil nuclear cooperation and the Indian Ocean Strategic Venture Initiative.
Trade remains another unresolved issue between the two countries.
Commerce and Industry Minister Piyush Goyal is visiting the United States for a meeting of G20 trade ministers in Wisconsin and is expected to meet US Trade Representative Jamieson Greer.
The discussions are part of efforts by the two governments to advance what they have described as a bilateral and mutually beneficial trade agreement.
Despite months of negotiations, the two sides have yet to finalise the deal.
The difficulties extend beyond the trade agreement and sanctions.
Speaking earlier this week at the Asia Society Policy Institute, Jaishankar said India-US relations had faced difficulties because Washington had not adequately understood some of India’s concerns.
He cited trade, including US Section 301 tariffs, terrorism and mobility among the issues that had affected the relationship.
Jaishankar’s comments indicated that New Delhi sees the recent friction as extending across several areas rather than being confined to India’s Russian energy purchases.
At the same time, neither government has indicated an intention to allow those differences to disrupt cooperation across the broader strategic relationship.
Defence, energy and critical technologies were specifically included in Wednesday’s discussion, alongside trade.
The two governments also continue to engage at senior diplomatic and ministerial levels despite their disagreements.
Modi and Trump last met on June 17 on the sidelines of the Group of Seven summit in France.
They are likely to meet again when Modi travels to Florida for the G20 Summit in mid-December. Modi is also scheduled to visit Canada, Germany and Brussels, the headquarters of the European Union.
The prospect of another Modi-Trump meeting gives the two governments several months to work through the immediate disputes over trade and energy.
Whether that produces an agreement will depend partly on the progress of negotiations being pursued by officials and ministers on both sides.
The sanctions issue presents a separate challenge because it directly connects India’s energy policy with US measures against Russia.
New Delhi has maintained that its energy decisions must reflect domestic economic requirements and the need to ensure reliable supplies for its population.
Washington, meanwhile, now has legislation giving the Trump administration considerable scope to use tariffs against countries continuing to purchase Russian energy.
Wednesday’s conversation did not produce a publicly announced breakthrough on either sanctions or the trade agreement.
Instead, Modi and Trump agreed to maintain close engagement while reviewing the wider relationship, leaving negotiations over the most contentious economic issues to continue through diplomatic and ministerial channels.
