Modi-Trump Phone Conversation Focuses on Bilateral Cooperation Amid Sanctions Regime Concerns
Prime Minister Narendra Modi and US President Donald Trump on Wednesday spoke over the phone and reviewed progress in bilateral cooperation across trade, defence , energy and critical technologies. This development comes as India and the US navigate fresh differences over Washington’s sanctions regime targeting countries that continue to buy Russian energy. The conversation comes at a sensitive point in India-US ties, with the recently enacted Lindsey O. Graham Sanctioning Russia and Iran Act (SRIA) of 2026 giving the US president the authority to impose tariffs of up to 100% on countries that continue purchases of Russian energy. India, one of the major buyers of Russian crude, has raised concerns with Washington over the potential implications of the legislation. According to the Prime Minister’s Office, PM Modi and President Trump reviewed bilateral cooperation in trade, defence, energy, critical technologies and other areas of mutual interest. They also exchanged views on regional and international developments and efforts to promote global peace and security. The two leaders reaffirmed their commitment to advancing the India-US Comprehensive Global Strategic Partnership and agreed to remain closely engaged. In a post on X, PM Modi described the conversation as “productive” and said, “We reviewed our 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.” Had a productive conversation with President Trump. We reviewed our 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. We also exchanged… The Prime Minister also said that he exchanged views on regional and international issues, including efforts to advance global peace and security. The conversation comes less than two weeks after the US President signed the SRIA into law, giving the US administration a mechanism to impose tariffs on countries that continue significant economic engagement with Russia. India has been closely watching the legislation because of its dependence on Russian crude. External Affairs Minister S Jaishankar raised New Delhi’s concerns over the law during his meeting with US Secretary of State Marco Rubio on the sidelines of the United Nations General Assembly in New York last week. “Reiterated India’s interests and concerns with regard to SRIA,” Jaishankar said after the meeting. The two ministers also discussed the situation in the Gulf and the Russia-Ukraine conflict. The issue has also featured in discussions between Indian and US officials in recent days. On September 30, Foreign Secretary Vikram Misri met a bipartisan US congressional delegation with the potential impact of the sanctions legislation on India-US ties and energy markets among the issues discussed. Trade remains another major issue in the relationship. India and the US reached a framework for an interim trade agreement in February 2026. The framework envisaged further negotiations towards a bigger Bilateral Trade Agreement, covering market access, digital trade, supply-chain resilience and non-tariff barriers, according to a PIB report. On September 24, Commerce and Industry Minister Piyush Goyal said that the India-US trade pact was “almost done and dusted”, but added that the two sides needed to secure the right competitive advantage for Indian exporters before the agreement could be executed. “We just have to find the right comparable competitive advantage over our competitor so that we can quickly execute the agreement,” Goyal said. Currently, Goyal is in the US for the G20 Trade Ministers’ Meeting in Milwaukee on September 30 and October 1. During the visit, he is also scheduled to engage with US Trade Representative Jamieson Greer as the two sides continue work on the bilateral trade agreement, according to a PIB report. Energy has emerged as a particularly sensitive component of the relationship because of India’s continued purchases of Russian crude. The US sanctions legislation has the potential to complicate India’s energy trade with Russia, while New Delhi has maintained that its energy interests need to be taken into account. The issue was directly raised by Jaishankar with Rubio during their recent meeting. Rubio, according to the US side, stressed that Washington remained positioned to help partners address their energy-security challenges. The subject is significant for the bigger bilateral relationship as energy cooperation is also part of the India-US economic partnership. The February 2026 interim trade framework envisaged India purchasing substantial quantities of US energy products, alongside aircraft, technology products and other goods, over the following five years. The US remains India’s largest trading partner. India’s merchandise exports to the US increased 21.83% to $8.4 billion, while imports rose 65.78% to $5.97 billion, according to PTI. During April-August 2026-27, India’s merchandise exports to the US rose 6.17% to $42.8 billion, while imports increased 29.6% to $28 billion. For 2025-26, bilateral merchandise trade stood at around $132.2 billion, comprising Indian exports of $86.51 billion and imports of $45.62 billion, PTI reported. India’s major exports to the US include electronic goods, engineering products and pharmaceuticals. Imports from the US include crude petroleum, electronic goods and industrial machinery. The Modi-Trump conversation also took place against a period of US engagement with China. Chinese President Xi Jinping was in the US from September 23 to 25 and held talks with Trump. For New Delhi, the US relationship spans trade and technology as well as defence and strategic cooperation, while Washington’s policies towards Russia and China increasingly intersect with India’s economic and security interests. The latest Modi-Trump phone conversation comes at a point when both sides are simultaneously trying to advance their trade negotiations and strategic partnership while managing differences over tariffs, Russian energy purchases and the wider geopolitical environment.
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