New Delhi, Friday, October 10, 2025 – Indian Prime Minister Narendra Modi held a phone call with US President Donald Trump on Thursday. The Modi Trump trade deal phone call reviewed good progress in ongoing negotiations. It addressed key aspects of India US trade talks. The discussion lasted about 20 minutes. Officials confirmed the exchange focused on economic ties. This comes as tariffs impact Indian exports worth $50 billion.
The Modi Trump trade deal phone call matters deeply for South Asia. India relies on the US market for one-fifth of its total exports in 2024. A breakthrough could stabilise supply chains and boost regional growth. It might ease pressures on labour-intensive industries. These sectors employ millions across the subcontinent. Success here could set a precedent for other South Asian nations in global trade pacts.
Details Emerge from Modi Trump Trade Deal Phone Call
Prime Minister Modi shared details of the Modi Trump trade deal phone call on X. He described President Trump as a friend. The leaders congratulated each other on recent diplomatic wins. They also touched on the Gaza peace plan. But trade dominated the agenda.
“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 posted.
The Press Information Bureau republished this statement. It serves as an official record. Indian officials noted the call occurred at 8:45 PM IST. That equates to 11:15 AM EDT in Washington.
Commerce Ministry sources provided further insights. They highlighted recent meetings in Washington. Teams from both sides met last week. Discussions covered tariff reductions and market access. Officials expect another round soon. Venues remain flexible between New Delhi and Washington. This Modi Trump trade deal phone call builds on prior efforts. It injects momentum into stalled talks. Both leaders committed to frequent contact. This approach aims to accelerate resolutions.
Tariff Pressures Shape India US Trade Talks Modi Trump Call
US tariffs pose major hurdles in the India US trade talks Modi Trump call. President Trump imposed 50% duties on most Indian exports. This marks the highest rate for any US partner. The move affects $50 billion in goods. It doubled from 25% due to India’s Russian oil imports.
Washington views these purchases as aiding Russia’s Ukraine war. India counters that US and European firms also engage with Russia. New Delhi calls this a double standard. Officials stress energy security drives their choices. Impacted sectors suffer most. Textiles face sharp declines in orders. Gems and jewellery exports dropped 15% year-on-year. The shrimp industry reports 20% revenue loss. These areas employ over 50 million workers. Many operate in South Asian hubs like Gujarat and Tamil Nadu.
India responded with domestic measures. Prime Minister Modi slashed taxes last month. Items from shampoos to cars saw cuts. This overhaul, the largest since 2017, aims to spur demand. It offsets tariff hits. Government data shows consumer spending rose 8% post-reforms. The three-quarters of Indian goods to the US now carry extra costs. This disrupts bilateral flows. Total trade hit $190 billion in 2024. India runs a $30 billion surplus. US officials push for balance. They seek greater market openings in dairy and agriculture.
During the Modi Trump trade deal phone call, leaders acknowledged these frictions. They pledged collaborative fixes. Progress includes preliminary agreements on digital trade. Both sides eye intellectual property alignments too.
Background: Evolution of India-US Trade Relations
India-US trade ties have deepened over decades. Bilateral volume grew from $120 billion in 2020 to $190 billion in 2024. Key drivers include technology and services. Yet disputes persist.
President Trump’s first term saw tensions rise. Tariffs targeted steel and aluminium. India retaliated on US nuts and apples. Talks faltered then. Re-engagement followed in 2025. Recent rounds in Washington yielded gains. Indian negotiators secured exemptions for pharmaceuticals. This sector exports $10 billion annually. US firms praised the pragmatism.
The Modi Trump trade deal phone call revives optimism. It echoes earlier summits. Leaders met in February 2025. They signed defence pacts worth $20 billion. Trade featured prominently. South Asia benefits indirectly. Stable India-US links enhance regional security. They promote supply chain diversification from China.
Challenges in Ongoing India US Trade Talks Modi Trump Call
Negotiators face sticking points. US demands lower farm barriers. India protects smallholders. Dairy imports remain capped at 2%. Agriculture employs 45% of Indians.
Intellectual property ranks high too. US pushes stricter enforcement. India balances generics access for affordability. Energy trade complicates matters. India’s Russian oil buys total 1.5 million barrels daily. US offers alternatives. LNG shipments from America rose 25% this year.
The Modi Trump trade deal phone call addressed these. Leaders agreed on working groups. These will meet virtually next week. Economic data underscores urgency. Indian exports to US fell 5% in Q3 2025. Tariffs contribute heavily. A deal could add $15 billion annually, per ministry estimates.
What’s Next for Modi Trump Trade Deal Phone Call Momentum
Another negotiation round looms. Officials target mid-November. Locations pend confirmation. Virtual options exist if needed. Both governments signal flexibility. India eyes tariff rollbacks. US seeks investment guarantees. Analysts predict a mini-deal by year-end. It could cover 60% of disputed goods. Full pact might follow in 2026.
The Modi Trump trade deal phone call sets the tone. It fosters trust. Regular leader-level inputs will guide teams. This forward push aligns with broader goals. India aims for $1 trillion exports by 2030. US partnership proves vital.
In conclusion, the Modi Trump trade deal phone call marks a positive turn. It highlights shared resolve in India US trade talks Modi Trump call. As discussions advance, both nations stand to gain from balanced commerce. Regional stability in South Asia hinges on such outcomes.
Published in SouthAsianDesk, October 10th, 2025
Follow SouthAsianDesk on X, Instagram, and Facebook for insights on business and current affairs from across South Asia.
