India and the United States are making steady progress toward finalising a bilateral trade agreement, following high-level discussions between Prime Minister Narendra Modi and US Vice-President JD Vance in New Delhi on Monday night.
Vance, currently on a four-day visit to India with his wife Usha and their three children, met with Modi to discuss a range of strategic issues, including trade, defence, energy, and technology cooperation. Modi also hosted a private dinner for the visiting family at his official residence.
“We are committed to mutually beneficial cooperation, including in trade, technology, defence, energy and people-to-people exchanges,” the Prime Minister wrote on social media following the meeting.
The talks come at a pivotal time, as India is among several nations negotiating trade deals with the United States during President Donald Trump’s 90-day suspension of higher tariffs. The temporary pause, which ends on 9 July, offers a critical window for New Delhi and Washington to reach an agreement that could avert punitive duties. India had been facing the prospect of 27% tariffs on key exports before the suspension was announced.
Despite warm personal ties between Modi and Trump—Modi was one of the first world leaders to visit the US President after the start of his second term—trade tensions have persisted. Trump has repeatedly criticised India’s high tariffs, referring to the country as a “tariff king” and accusing it of unfair trade practices.
Echoing this sentiment, US Trade Representative Jamieson Greer noted a “serious lack of reciprocity” in trade relations with India in a statement issued after the Vance meeting. While India has cut tariffs on several goods in recent months, sticking points remain, particularly in the agriculture sector, which Washington wants greater access to and New Delhi continues to protect.
Alongside trade, the leaders also reviewed cooperation in defence, strategic technologies, and energy. Modi’s office said he looked forward to welcoming Trump to India later this year, potentially during the upcoming Quad summit hosted by Delhi.
Vance’s trip also includes a personal dimension. His wife, Usha, has family roots in Andhra Pradesh, and the couple is keen to introduce their children to their Indian heritage. Their arrival in India drew media attention, with images of their children dressed in traditional Indian attire appearing in local newspapers.
Following the meeting in Delhi, the Vance family travelled to Jaipur, where they visited the historic Amer Fort. Vance is expected to deliver a speech on US-India relations in the city. The family will also visit the Taj Mahal in Agra before concluding their visit and returning to the United States on Thursday.
