Indian Prime Minister Narendra Modi said on Wednesday he had held a conversation with U.S. President Donald Trump, with the latter saying they had discussed trade as the countries negotiate a deal that could mend strained ties.
Relations plummeted in August when Trump raised tariffs on Indian exports to the U.S. to 50% and U.S. officials accused India of financing Russia's war in Ukraine by buying Moscow's discounted oil.
During a ceremony to mark Diwali, the Hindu festival of lights, on Tuesday, Trump told reporters he had spoken by phone with Modi.
"We talked about trade – we talked about a lot of things, but mostly the world of trade," Trump said while lighting candles for the celebration at the White House. "He's very interested in that."
Modi thanked Trump for the call, saying on X that he hoped "our two great democracies continue to illuminate the world with hope."
India has yet to secure a formal trade deal with the U.S., despite being among the first nations to initiate negotiations with Washington after Trump began his second term.
Trump also repeated his claim – first made on Oct. 15 – that India would cut Russian oil purchases. New Delhi has neither confirmed nor denied any policy shift.
India, one of the world's largest crude oil importers, relies on foreign suppliers for more than 85% of its oil needs.
Traditionally reliant on Middle Eastern producers, New Delhi started buying heavily discounted Russian crude in 2022, taking advantage of Western sanctions that limited Moscow's export options.
Several other sources of friction have strained Washington's relationship with India this year.
They include Trump's assertions that he achieved a cease-fire between India and Pakistan to end an intense four-day conflict over the contested region of Kashmir in May. Modi has said there was no such mediation by a world leader.
And last month, the Trump administration hiked fees for H-1B skilled-worker visas to $100,000. Indians make up roughly three-quarters of all H-1B recipients.
Trump and Modi may yet meet this month at the Association of Southeast Asian Nations (ASEAN) summit in Malaysia, which Trump is set to attend.
New Delhi has not confirmed whether Modi will participate, as India is not a member of the 10-nation bloc.
But some Indian newspapers have reported that he may attend.
