There should be no war with Pakistan, issues can be resolved through trade, Trump tells Modi

US President Donald Trump said on Monday he had told Indian Prime Minister Narendra Modi that there should be no war with Pakistan, stressing that he had helped avert several conflicts through diplomacy and trade pressure.

Speaking to reporters in the Oval Office during Diwali celebrations, Trump extended his “warmest wishes to the people of India” and said he had “just spoken to your Prime Minister today.” He described the conversation as “great” and said, “We talked about trade... He's very interested in that.”

Trump added that they also discussed avoiding conflict, saying, “Although we did talk a little while ago about let's have no wars with Pakistan.” He noted the role of commerce in easing tensions: “The fact that trade was involved, I was able to talk about that.”

The US president emphasised the outcome, saying, “And we have no war with Pakistan and India. That was a very, very good thing.” He concluded by praising Modi personally: “He's a great person, and he's become a great friend of mine over the years.”

The US president claimed he had prevented eight wars so far through what he described as “deals and trade,” including one between Pakistan and India.

“During the Pakistan-India conflict, seven planes were shot down,” Trump said. “I called both countries and told them that if they went to war, the United States would stop trading with them. Within 24 hours, they called back and said they didn’t want to fight.”

Trump has previously taken credit on several occasions for helping defuse tensions between the two nuclear-armed neighbours, who have fought three wars since independence and remain at odds over the disputed territory of Indian Illegally Occupied Jammu and Kashmir (IIOJK).

In May, Pakistan and Indian engaged in a military showdown, the worst between the old foes in decades, which was sparked by a terrorist attack on tourists in IIOJK's Pahalgam area, which New Delhi said was backed by Pakistan.

Islamabad denied involvement in the Kashmir attack, which killed 26 men and was the worst assault on civilians in India since the Mumbai attacks in 2008.

After the incident, India killed several innocent civilians in unprovoked attacks on Pakistan for three days before the Pakistan Armed Forces retaliated in defence with the successful Operation Bunyan-um-Marsoos.

Pakistan downed six IAF fighter jets, including three Rafale, and dozens of drones. After at least 87 hours, the war between the two nuclear-armed nations ended on May 10 with a ceasefire agreement brokered by the US. 

Trump added that energy was also part of the discussion, saying Modi assured him that India would be limiting its oil purchases from Russia.

"He's not going to buy much oil from Russia. He wants to see that war end as much as I do," Trump said.

India and China are the two top buyers of Russian seaborne crude exports.

Trump has recently targeted India for its Russian oil purchases, imposing tariffs on Indian exports to the US to discourage the country's crude buying as he seeks to pressure Moscow to negotiate a peace deal in Ukraine.

Trump reiterated on Sunday that Modi told him India will stop buying Russian oil, while warning that New Delhi would continue paying "massive" tariffs if it did not do so.

"I spoke with Prime Minister Modi of India, and he said he's not going to be doing the Russian oil thing," Trump told reporters aboard Air Force One.

Asked about India's assertion that it was not aware of any conversation between Modi and Trump, Trump replied: "But if they want to say that, then they'll just continue to pay massive tariffs, and they don't want to do that."

Russian oil has been one of the main irritants for Trump in prolonged trade talks with India - half of his 50% tariffs on Indian goods are in retaliation for those purchases. The US government has said that petroleum revenue funds Russia’s war in Ukraine.

India has become the biggest buyer of seaborne Russian oil sold at a discount after Western nations shunned purchases and imposed sanctions on Moscow for its 2022 invasion of Ukraine.

Trade talks between India and the US are going on in a "congenial" manner, an Indian government official said on Saturday, declining to be identified due to the sensitivity of talks.

An Indian delegation, which was in the US earlier this month for talks, has returned, the official said, declining to share further details.

An email to India's trade ministry was not immediately answered on Monday, which was a public holiday.

Trump on Wednesday said Modi had assured him that day that India would stop its Russian oil purchases. India's foreign ministry said it was not aware of any telephone conversation between the leaders that day, but said that New Delhi's main concern was to "safeguard the interests of the Indian consumer."

A White House official said on Thursday that India has halved its purchases of Russian oil, but Indian sources said no immediate reduction had been seen.

The sources said Indian refiners already placed orders for November loading, including some slated for December arrival, so any cut may start showing up in December or January import numbers.

India's imports of Russian oil are set to rise about 20% this month to 1.9 million barrels per day, according to estimates from commodities data firm Kpler, as Russia ramps up exports after Ukrainian drones hit its refineries.