New Delhi – Indian Prime Minister Narendra Modi and US Vice President JD Vance on Monday welcomed significant progress in negotiations toward a long-anticipated trade agreement between the two nations, as New Delhi pushes to avert potential US tariff hikes and deepen ties with the Trump administration.
During Vance’s four-day visit to India, both leaders emphasized the importance of accelerating trade talks and expressed optimism about reaching a bilateral deal that promotes job creation and economic well-being in both countries.
The visit, though partly personal and including a trip to the Taj Mahal and a speech in Jaipur, carried strong diplomatic undertones. Modi and Vance reviewed key areas of cooperation such as energy, defence, and strategic technologies, while also addressing pressing regional and global challenges. Both reiterated the need for dialogue and diplomacy — a standard Indian stance, particularly in reference to the conflict in Ukraine.
A statement from Vance’s office underscored the mutual desire to develop a “new and modern trade agreement.” The talks gained urgency following President Donald Trump’s April 9 decision to pause tariff hikes for 90 days for major trading partners, including India.
With India being the US’s largest trading partner — bilateral trade reached $129 billion in 2024 — officials in New Delhi are keen to finalize at least the first phase of the deal by this autumn. India currently holds a trade surplus of $45.7 billion with the US.
Prime Minister Modi conveyed his greetings to President Trump and expressed anticipation for his upcoming visit to India later this year, which is expected to coincide with the Quad leaders’ summit involving Australia, Japan, the US, and India.
Vance, whose wife Usha is of Indian origin, landed in Delhi after a visit to Rome, where he met Pope Francis. His presence in India is seen as laying the groundwork for Trump’s upcoming visit and bolstering bilateral relations in the lead-up to critical negotiations.
Indian Finance Minister Nirmala Sitharaman, speaking in San Francisco, reiterated the importance of a comprehensive pact with the US. “The long and short of engaging with the US is not just for reciprocal tariff-related matters, but because it’s our largest trading partner,” she said.
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Foreign policy expert Harsh Pant of the Observer Research Foundation highlighted the strategic timing of Vance’s visit, particularly amid rising US-China tensions and Vance’s growing diplomatic profile. “This visit adds an important layer to the evolving Indo-US partnership,” he noted.
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