New Delhi: A day after reports emerged that India and the US are close to sealing a trade deal to reduce tariffs to 15-16 per cent from 50 per cent, it has emerged that Prime Minister Narendra Modi will participate virtually in the ASEAN summit in Kuala Lumpur, ruling out a possible meeting with US President Donald Trump.

This also indicates that New Delhi and Washington may not be close to sealing a trade deal.

"Look forward to joining the ASEAN-India Summit virtually, and to further deepening of the ASEAN-India Comprehensive Strategic Partnership," Modi said on X on Thursday while referring to a conversation with Malaysian Prime Minister Anwar Ibrahim. 

Anwar also said he had been informed Modi would attend the gathering virtually "due to the ongoing Deepavali celebrations in India at that time".  

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The US and India have been negotiating for months to thrash out a trade deal, but India's Russian oil imports have complicated talks. In August US imposed a punitive 25 per cent tariff on Indian goods, raising total levies to 50 per cent.

The ASEAN summit, the meeting of the leaders of the Southeast Asian grouping, will take place in the Malaysian capital from October 26 to October 28. It will be attended by all 10 members of the bloc and key trading partners such as China, Japan and the US. 

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Malaysia's foreign minister said last week that Trump would visit the country on October 26, fuelling speculation in India about a possible meeting with Modi. 

Trump and Modi spoke on Tuesday, both leaders said, with Trump adding that their conversation focused largely on trade. Modi did not elaborate on the content of their conversation.
(With Reuters inputs)

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