US vice president Vance, PM Modi welcome ‘significant progress’ in trade pact talks under US tariffs shadow

NEW DELHI: India and the US on Monday welcomed “significant progress” in negotiations for a bilateral trade agreement as Prime Minister Narendra Modi and US vice president JD Vance discussed ways to bolster cooperation in energy, defence and strategic technologies.

The talks for the first tranche of a trade deal, which is focused on issues such as tariffs and market access, and cooperation within the framework of the bilateral comprehensive global strategic partnership figured in a meeting between Modi and Vance at the prime minister’s official residence on Monday evening.

Modi hosted Vance, Second Lady Usha Vance and their children – sons Ewan and Vivek and daughter Mirabel – for a dinner that was also attended by cabinet ministers.

Vance’s first visit to India comes against the backdrop of consultations between the two sides on the trade deal, which moved into high gear after President Donald Trump paused customised reciprocal tariffs that he had imposed on some 60 countries, including India, till July.

Modi and Vance “welcomed the significant progress in the negotiations for a mutually beneficial India-US Bilateral Trade Agreement focused on the welfare of the people of the two countries”, according to a readout from the Indian side on the meeting that was also attended by external affairs minister S Jaishankar and National Security Adviser Ajit Doval.

Modi and Vance “welcomed the significant progress in the negotiations for a mutually beneficial India-US Bilateral Trade Agreement focused on the welfare of the people of the two countries”, according to a readout from the Indian side after the meeting that was attended by external affairs minister S Jaishankar and National Security Adviser Ajit Doval.

Modi said in a social media post that he and Vance “reviewed the fast-paced progress following my visit to the US and meeting with President Trump”. He added, “We are committed to mutually beneficial cooperation, including in trade, technology, defence, energy and people-to-people exchanges.”

The India-US comprehensive global strategic partnership, Modi said, will be a “defining partnership of the 21st Century for a better future of our people and the world”.

The readout, without giving details, said the two leaders “noted continued efforts towards enhancing cooperation in energy, defence, strategic technologies and other areas”. They also “reviewed and positively assessed” progress in various areas of bilateral cooperation.

Modi and Vance, who last met on the margins of the AI Action Summit in Paris in February, also discussed various regional and global issues of mutual interest and “called for dialogue and diplomacy as the way forward”, the readout said in an apparent reference to the conflicts in Ukraine and West Asia. The meeting was an opportunity for Vance to brief the Indian side on US efforts to end the Russia-Ukraine war and the Israel-Hamas conflict.

Modi recalled his visit to Washington in February and his “fruitful discussions” with Trump, which resulted in a roadmap for close cooperation between India and the US that leverages the “strengths of Make America Great Again (MAGA) and Viksit Bharat 2047”, the readout said.

India and the US set a target for more than doubling two-way trade to $500 billion by 2030 during Modi’s visit in February, and the two sides also agreed to finalise the first tranche of a mutually beneficial, multi-sector bilateral trade agreement by the fall of 2025 to deepen bilateral trade in goods and services, increase market access, reduce tariff and non-tariff barriers and deepen supply chain integration.

Negotiations on the trade deal gained pace after Trump imposed the so-called “Liberation Day” reciprocal tariffs on some 60 countries, including levies of 26% on India, on April 2. Trump subsequently paused tariffs for all countries, except China, for 90 days.

US deputy trade representative Brendan Lynch visited India in March to discuss the terms of reference or contours of the trade deal. An Indian team of negotiators will travel to the US from April 23 to talks on an interim agreement, with the focus on finalising an arrangement within the 90-day period during which Trump has paused his reciprocal tariffs, people familiar with the matter said on condition of anonymity.

The focus will also be concluding an interim agreement that incorporates low hanging fruit, including goods such as agricultural produce, automobiles and alcoholic beverages, while protecting the interests of Indian manufacturers, the people said. The proposed deal has 19 chapters covering tariffs, non-tariff barriers, rules of origin and customs regulations, they said.

During the meeting with Vance, Modi extended his best wishes to the vice president and his family for their stay in India. Modi also conveyed his greetings to Trump and said he looked forward to the US president’s visit to India later this year.

Trump is expected to visit India for the Quad Leaders’ Summit, which is expected to be held around September. However, reports have suggested that Trump, who has often targeted India for its tariffs, has linked the proposed visit to the successful conclusion of a trade deal.