The Indian and US leaders held a phone call as they struggle to finalize a trade deal

Indian Prime Minister Narendra Modi and US President Donald Trump held a phone call on Wednesday. The two countries are trying to reach a trade deal amid US pressure on India over its purchases of Russian oil.

The leaders reviewed cooperation in trade, defense, energy, and critical technologies and exchanged views on regional and international issues, according to statements issued by New Delhi and Washington.

The call comes days after Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act into law on September 18. The legislation expands sanctions, tariffs, and prohibitions on Russia while extending existing sanctions on Iran. The official Indian readout made no mention of the new law.

Last week, however, New Delhi raised the issue directly with Washington. Indian Foreign Minister S. Jaishankar reiterated concerns over the legislation during talks with US Secretary of State Marco Rubio in New York. The law provides for tariffs of up to 100% on goods from major buyers of Russian crude oil and natural gas under specified conditions.

India has previously warned that measures targeting its Russian energy trade could affect bilateral relations and the international energy market, while maintaining that it will continue diversified oil sourcing.

Russia remains India's largest crude supplier despite lower purchases in recent months. Russian shipments stood at about 2.1 million barrels per day (bpd) in August and were expected to fall to around 1.75 million bpd in September as export availability tightened and competition from Chinese refiners increased.

The Modi-Trump call also followed a meeting held by Indian Commerce Minister Piyush Goyal and US Trade Representative Jamieson Greer on the sidelines of the G20 Trade Ministerial in Milwaukee. The two sides are seeking to advance negotiations on the India-US Bilateral Trade Agreement (BTA) that have stretched for months. The two countries finalized the framework for the first phase of the BTA in February, but since then US tariff pressure has forced New Delhi to review the terms.

The US remains India's largest trading partner, with bilateral merchandise trade reaching $132.2 billion in the 2025-26 financial year. Indian exports accounted for $86.51 billion, while imports from the US totaled $45.62 billion.

(RT.com)