PM Modi calls US President Trump, discusses trade, defence, energy amid Russia sanctions

Prime Minister Narendra Modi dialled US President Donald Trump on Wednesday to assess cooperation in key areas such as trade, energy and defence and to discuss regional and global issues against the backdrop of New Delhi’s concerns over a US sanctions law on Russia.

India has said the Lindsey O Graham Sanctioning Russia and Iran Act, which gives Trump the power to impose tariffs of up to 100% on the top five purchasers of Russian oil, can have implications for bilateral relations and the global energy market. Concerns about the US law have grown at a time when India and the US remain engaged in negotiations on a bilateral trade deal.

Modi described his conversation with Trump in a social media post as productive and said they reviewed bilateral cooperation in trade, defence, energy, critical technologies and other areas. “We agreed to maintain close engagement to take our Comprehensive Global Strategic Partnership forward,” he said.

The two leaders also discussed regional and international issues, including ongoing efforts to advance global peace and security, Modi said.

People familiar with the matter said the phone call was initiated by the Indian side. A readout from the Indian government said the two leaders reaffirmed their commitment to advancing the India-US Comprehensive Global Strategic Partnership and agreed to “maintain close engagement to deepen cooperation for the benefit of the people of both countries”. The leaders agreed to remain in touch, the readout said.

Modi and Trump last met on the margins of the G7 Summit in France in June, though they have spoken on the phone several times this year.

Concerns have grown on the Indian side over the new US sanctions law on Russia, especially because of the way the Trump administration has used tariffs since last year, when Indian goods were hit with 50% tariffs, including a 25% levy over Russian oil purchases. Russia has accounted for more than 50% of India’s oil purchases in recent months.

The phone call came a day after external affairs minister S Jaishankar highlighted several concerns related to the relationship with the US, including the protracted negotiations for the bilateral trade agreement, the Trump administration’s lack of “appreciation or empathy” for terrorism emanating from Pakistan, and the impact of changes in American immigration rules and regulations on the mobility of Indian professionals.

While speaking at the Asia Society in New York, Jaishankar said the complex India-US trade deal negotiations were “tested against a ground reality which was much more complex” and by changes on the American side.

Referring to Pakistan-backed terrorism, Jaishankar said the lack of “understanding or appreciation or empathy” of this issue on the US side creates a problem. “If…one of my primary concerns is not fully appreciated by my partner, then clearly there is an impact of that on the relationship,” he said, in an apparent reference to the Trump administration’s close ties with Pakistan Army chief Asim Munir.

While the mobility of Indian professionals was seen as “an economic gain”, the “economics of mobility and the politics of mobility are at odds with each other”, Jaishankar said.

However, India and the US have remained engaged on the proposed trade deal ahead of Modi’s planned visit to the US for the G20 Summit in mid-December. Commerce minister Piyush Goyal is visiting the US from September 29 to October 5 for talks on the trade deal and to attend a G20 trade ministers’ meeting. Goyal is expected to meet US counterparts as part of efforts to advance ‌a “balanced and mutually beneficial” bilateral trade agreement, the Indian side said this week.