US Commerce Secretary Howard Lutnick has stated that the India-US trade deal failed to materialize because Prime Minister Narendra Modi did not make a crucial call to then-President Donald Trump to finalize it. Lutnick, in a recent podcast interview, revealed that he had arranged for the deal to be concluded, but India was "uncomfortable" making the call, which ultimately led to Modi not contacting Trump. This assertion by Lutnick comes amidst a period of strained trade relations, characterized by the US imposing significant tariffs on Indian imports, including a 50% tariff partly linked to India's ongoing purchase of Russian oil. Lutnick had previously voiced strong opinions, suggesting that India would eventually be compelled to "say sorry" and seek a trade agreement with the United States, emphasizing America's position as the world's largest consumer market. The Commerce Secretary highlighted that while the US successfully finalized trade agreements with other nations like Indonesia, the Philippines, and Vietnam, the deal with India was anticipated to be concluded even earlier. The lack of the anticipated call from Prime Minister Modi, according to Lutnick, left the deal stalled. Both countries have been involved in multiple rounds of negotiations to develop a framework trade deal, aiming to address tariff issues and work towards a comprehensive trade agreement to significantly increase bilateral trade by 2030. This statement underscores the diplomatic and economic complexities between the two nations, particularly concerning trade barriers and geopolitical alignments related to energy imports. The news has been widely reported by several credible Indian news outlets on January 9, 2026, indicating its significant and current relevance.