Vance and Modi Applaud Major Advancements in India-US Trade Deal

• Modi expresses eagerness for Trump’s visit to India later this year.
• Vance is on a primarily personal, four-day trip to India.
• Timing is essential as India and the US are negotiating a trade agreement, according to analysts.

US Vice President JD Vance and Indian Prime Minister Narendra Modi announced noteworthy advancements in negotiations for a pending trade agreement between their nations, according to official statements released on Monday. This progress comes as New Delhi seeks to avoid looming US tariffs and strengthen its relationship with the Trump administration.

Vance, accompanied by his family, arrived in India earlier today for a mostly personal four-day visit that includes sightseeing at the Taj Mahal and delivering a speech in Jaipur, as reported by US officials.

During their discussions, the leaders highlighted ongoing efforts to bolster collaboration in sectors including energy, defense, and strategic technology, as noted in a statement from Modi’s office following their meeting.

They also addressed various regional and global issues, advocating for dialogue and diplomacy as crucial pathways to resolution, a common perspective in Indian discourse around international conflicts, often without specifying particular incidents.

In past instances, New Delhi has applied this approach to discussions surrounding the situation in Ukraine.

The prime minister extended his best wishes to President Trump and expressed anticipation for his visit to India later in the year, the statement revealed.

According to Vance’s office, the leaders reached an agreement on a roadmap for continued dialogue regarding trade. The statement emphasized that a bilateral trade agreement represents a chance to negotiate a contemporary deal aimed at job creation and enhancing the well-being of citizens in both countries.

Vance’s wife, Usha, is the daughter of Indian immigrants.

The vice president arrived in New Delhi after visiting Rome, where he held a private meeting with Pope Francis on Easter Sunday.

Modi and Vance reviewed the advancements in various sectors of bilateral cooperation, which were initially outlined in February when the Indian leader met with President Trump in Washington, focusing on equitable trade and growth in their defense collaboration.

‘Need for Agreement with Leading Trade Partner’

Modi was among the first global leaders to engage with Trump after his inauguration. Reports indicate that his administration is amenable to reducing tariffs on a significant portion of imports from the US, valued at approximately $41.8 billion in 2024, as part of a trade agreement.

However, the US president has consistently labeled India as a “tariff abuser” and “tariff king.”

“We are optimistic that this visit will further enhance our bilateral relations,” stated Indian foreign ministry spokesperson Randhir Jaiswal during a press briefing on Thursday regarding Vance’s visit to India.

The United States has emerged as India’s largest trading partner, with bilateral trade reaching $129 billion in 2024, yielding a surplus of $45.7 billion in India’s favor, according to US trade data.

Officials in New Delhi are hopeful about finalizing a trade agreement with the US within the 90-day delay on tariff increases announced by Trump on April 9, which affects major trading partners, including India.

India aims to “positively conclude” the initial phase of the trade pact by this fall, as stated by Indian Finance Minister Nirmala Sitharaman in San Francisco on Monday during her extensive schedule of engagements with the US.

“The essence of our engagement with the US isn’t solely about this reciprocal tariff matter; it’s about maintaining a solid agreement with our largest trading partner,” Sitharaman remarked while addressing the Indian diaspora.

Vance’s visit is also viewed as preparation for Trump’s later trip to India for the leaders’ summit of the Quad alliance, comprising India, Australia, Japan, and the US.

Harsh Pant, head of foreign policy at the Observer Research Foundation in Delhi, emphasized the importance of Vance’s visit given the ongoing trade negotiations.

“With escalating tensions between the US and China, Vance’s prominent role in American diplomacy adds even greater significance to this visit,” he concluded.