PM Narendra Modi and US President Donald Trump held a telephone conversation, reviewing the progress of India-US cooperation in trade, defence, energy and critical technologies.
The discussion came at a sensitive stage in bilateral relations, with negotiations on a trade agreement continuing alongside differences over India’s purchases of Russian oil.
PM Modi described the conversation as productive and said both leaders agreed to remain closely engaged to take the India-US Comprehensive Global Strategic Partnership forward. The two leaders also exchanged views on regional and international developments and efforts to promote global peace and security, according to the Prime Minister’s Office.
The phone call came as India and the United States work towards an interim trade agreement under a broader bilateral trade agreement. Commerce and Industry Minister Piyush Goyal is currently in the US for discussions with American officials and business leaders, adding a trade-focused track to the high-level diplomatic engagement.
Goyal also met US Trade Representative Jamieson Greer on the sidelines of the G20 Trade Ministers’ meeting in Milwaukee. The meeting focused on advancing negotiations towards a balanced and mutually beneficial India-US trade agreement and an interim arrangement.
Trade remains one of the most important issues in the relationship. India is seeking better market access and competitive conditions for its exporters, while the US has raised concerns around tariffs and access to the Indian market. The two sides have been negotiating the contours of a wider trade agreement for several months.
The latest PM Modi-Trump conversation also took place against the backdrop of a new US sanctions law concerning Russia and Iran. The legislation gives the US president powers to impose tariffs of up to 100% on countries that continue purchasing Russian oil and gas under specified conditions. India has expressed concern that such measures could affect its economic interests, energy security and bilateral relations with Washington.
India’s dependence on imported crude makes energy a particularly important part of the relationship. Russian oil has become a major source of India’s crude imports in recent years, with refiners buying Russian supplies because of their availability and commercial terms. New US measures targeting countries purchasing Russian energy therefore have implications for India’s energy security as well as its trade relationship with Washington.
The issue had already been raised by External Affairs Minister S Jaishankar and other senior Indian officials in conversations with their US counterparts. New Delhi has maintained that its energy purchases are driven by national interests and market considerations, while also stressing the importance of maintaining strong relations with the United States.
The Modi-Trump conversation also covered defence cooperation, an area that has become a central pillar of the India-US strategic partnership. The two countries have expanded defence exercises, military cooperation and technology engagement over the past decade. Critical and emerging technologies have also gained importance as both sides seek greater cooperation in areas such as advanced technology, supply chains and innovation.
The inclusion of critical technologies in the leaders’ discussion reflects the broader shift in India-US ties beyond traditional trade and defence. Technology partnerships, resilient supply chains and cooperation in strategic sectors are increasingly part of the bilateral agenda.
The two leaders also discussed regional and international issues, although the Indian government’s official readout did not provide details of individual issues discussed. It said they exchanged views on regional and international developments and ongoing efforts to advance global peace and security.
The conversation was the first between PM Modi and Trump since the recent US legislation on Russia-related sanctions. The two leaders had last met in person on the sidelines of the G7 summit in France in June and have spoken several times this year.
The timing of the latest call is significant for the trade negotiations. Goyal’s US visit runs from September 29 to October 5, during which he is engaging with US officials and American industry representatives. He has also been seeking greater US investment in India’s manufacturing sector and encouraging American companies to build partnerships with Indian businesses.
Both governments now face the task of managing trade differences while expanding cooperation in strategic areas. A trade agreement would provide greater clarity for businesses on tariffs, market access and investment, while continued engagement on defence, energy and technology remains important to the wider strategic relationship.
The latest PM Modi-Trump conversation therefore keeps the focus on engagement rather than any single issue. Trade negotiations, energy security, defence cooperation and critical technologies are all closely linked to the future direction of India-US relations. The two leaders’ decision to remain in touch leaves further negotiations and official-level discussions to address the outstanding issues.
