Modi and Vance Highlight Progress in Trade Negotiations
Indian Prime Minister Narendra Modi and US Vice President JD Vance were optimistic on Monday regarding the current trade negotiations between India and the United States. The two leaders applauded the "substantial progress" being achieved toward a comprehensive bilateral trade agreement.
Vance, in India on a mostly personal visit with second lady Usha Vance and their family, met Prime Minister Modi at his official residence in New Delhi. A statement from Modi’s office confirmed that both leaders welcomed the pace of the discussions and reaffirmed their commitment to achieving a mutually beneficial outcome.
Broad Areas of Bilateral Cooperation Reviewed
In addition to trade, Modi and Vance reviewed the overall situation of India-U.S. collaboration in matters of strategic significance. These were energy, defense, and strategic technologies, wherein both partners have persistently invested in bilateral growth and cooperation.
The leaders also exchanged views on major regional and international developments, and emphasized the role of diplomacy and dialogue in creating more international peace and stability.
Temporary Suspension of Tariffs Encourages Negotiations
The U.S. had earlier imposed a 26% reciprocal tariff on certain Indian goods last month. President Donald Trump, however, temporarily suspended the tariffs for 90 days from April 9, reducing the rate to a 10% floor—a gesture aimed at easing ongoing trade talks.
U.S. Trade Representative Emphasizes Reciprocity
U.S. Trade Representative Jamieson Greer announced on Monday that the two countries have mutually agreed on the terms of reference to structure the next round of trade talks. Greer conceded that "there is a serious lack of reciprocity" in the current trade relationship, but welcomed India's cooperative approach to the negotiations.
"I look forward to building new opportunities for workers, farmers, and entrepreneurs in both our nations," Greer continued.
Aggressive Goal: $500 Billion Bilateral Trade by 2030
Earlier this February, Prime Minister Modi and President Trump had jointly decided to aim for more than double the growth in India-U.S. bilateral trade to the level of $500 billion by 2030.
According to the Office of the U.S. Trade Representative, the two countries' total trade in goods was valued at approximately $129 billion in 2024. India recorded a trade surplus of $45.7 billion in the United States for the year.