A fresh war of words erupts after a US cabinet official blames PM Modi for a failed India–US trade deal, while New Delhi rejects the charge and backs formal negotiations.

A new flashpoint has emerged in India–US economic ties after a senior American official publicly faulted Prime Minister Narendra Modi for a trade agreement that never materialised. The claim was quickly pushed back by New Delhi, which said talks with Washington must follow official diplomatic and commercial channels rather than personal phone calls.

The controversy follows months of negotiations that began earlier this year and went through several formal rounds. While the US side suggested that the deal stalled because a proposed leader-level conversation did not happen, Indian authorities countered that trade pacts are concluded by negotiators, not hurried last-minute calls between heads of government.

The disagreement soon spilled into domestic politics, with opposition parties accusing the Modi government of poor handling of India’s economic diplomacy. Supporters of the government, however, argue that New Delhi has been right to shield sensitive sectors such as farming and dairy from rushed concessions.

From an Indian perspective, the episode highlights how fragile high-stakes trade talks can become when they drift into political point-scoring. Businesses that rely on exports and imports may need to prepare for continued uncertainty until a clearer path to an agreement is established. In the longer run, a more transparent and steady negotiating process could help both countries avoid such public stand-offs and restore confidence in bilateral trade.