U.S. Vice President J.D. Vance met Indian Prime Minister Narendra Modi, in New Delhi during a four-day visit to India. The meeting took place at Modi’s residence focusing on fast-tracking a bilateral trade deal amid U.S. tariff tensions and strengthening economic, trade, and geopolitical ties. Discussions also covered regional security and initiative for technology cooperation. Modi hosted Vance, his wife Usha, and their children emphasizing cultural ties, as Usha Vance is of Indian descent.

The U.S. and India are negotiating a bilateral trade agreement (BTA) to boost trade from ~$200 billion to $500 billion by 2030, with the first phase targeted for completion by September-October 2025.

Both nations are finalizing chapter framework covering tariffs, goods, non-tariff barriers, and customs facilitation. The U.S. imposed a 26% tariff on Indian goods but announced a 90-day pause on further hikes for India and other partners, providing a window to advance talks. India has not retaliated, focusing on negotiations to reduce or eliminate these tariffs. Bilateral trade was $129 billion in 2024, with India holding a $45.7 billion surplus. The U.S. seeks to address this deficit, pushing for reduced Indian tariffs on agriculture, industrial goods, and automobiles. India aims for concessions in labour-intensive sectors like textiles, gems, and shrimp. Pharmaceuticals and semiconductors are exempt from U.S. tariffs, benefiting India’s pharma industry. The deal aligns with the “Mission 500” initiative from February 2025, emphasizing market access, supply chain integration, and technology transfers.

U.S. Vice President J.D. Vance’s meeting with PM Modi is significant progress in this direction. The visit, amid a 90-day tariff pause aimed to fast-track the deal, with discussions on economic ties and regional security.

Galactik Views