US Vice President JD Vance and Indian Prime Minister Narendra Modi have hailed progress in talks over a trade deal between the nations after meeting in New Delhi.
Vance, who is currently on a four-day visit to India with his wife and children, met with Modi at his residence in India’s capital on Monday.
The pair discussed improved bilateral cooperation in various areas such as energy, defence and technology, and “welcomed the significant progress” in the negotiations of an expected trade deal between the two countries, Modi’s office said in a statement.
The White House said on Monday that Vance and Modi had laid down “a roadmap for further discussions”.
Speaking in the north-western Indian city of Jaipur on Tuesday, Vance praised Modi and said that the two countries had finalised the terms of reference for the trade talks.
“I believe that if India and the United States work together successfully, we are going to see a 21st century that is prosperous and peaceful,” Vance said, adding that if this didn’t happen, it would mean a “dark time for all humanity”.
The US is India’s main trading partner, and their bilateral trade was $129 billion (€113 billion) in 2024, with a $45.7 billion (€39.9 billion) surplus in favour of India, official US data shows.
The countries are aiming to increase bilateral trade to $500 billion (€436 billion) by 2030.
New Delhi is seeking an early trade deal with Washington against the backdrop of tariff threats by US President Donald Trump. Earlier this month, Trump announced a 90-day pause on his sweeping tariff regime against nearly all countries, including India.
India was set to face a 27% “reciprocal” tariff from the US before the duties were put on hold, with the pause ending on 9 July. The world’s most populous country — like all other nations — is currently subject to a baseline levy of 10% by Washington.
Greater collaboration
The US has long sought to develop a deeper partnership with India, which is seen as a bulwark against China.
India is seeking to market itself as the world’s manufacturing hub at a time when China faces particularly steep tariffs from Washington, with no sign of a détente happening soon.
Modi established a good working relationship with Trump during his first presidency, and he was one of the first leaders to visit the US president after his second term started.
During his visit in February, Modi hailed a “mega partnership” with the US, and kickstarted a negotiation process to minimise the possible fallout of Trump’s tariffs.
While Trump has praised Modi and called him a “great friend”, he has also criticised India’s high tariffs, branding the nation a “tariff king” and a “big abuser” of trade ties.
The trade negotiations are especially urgent for India, above all in the agriculture, processed food, car components, medical equipment and jewellery industries.
India is also a major defence partner of the US, and in recent years it has embedded advanced American jets, helicopters, missiles and military gear into its armed forces.
In his speech in Jaipur on Tuesday, Vance mentioned Trump’s push to supply more military equipment to India.
“We, of course, want to collaborate more,” Vance said. “We want to work together more, and we want your nation to buy more of our military equipment.”
