
NEW DELHI: US Vice President JD Vance is set to begin a four-day visit to India on Monday as the two countries aim to explore economic opportunities and negotiate a bilateral trade agreement.
Vance is scheduled to meet Indian Prime Minister Narendra Modi in New Delhi to discuss economic, trade, and geopolitical relations. The visit is regarded as a significant diplomatic mission by President Donald Trump’s administration and coincides with an escalating trade war between Washington and Beijing, New Delhi’s primary regional rival.
A trade agreement between India and the US could substantially enhance economic ties and strengthen diplomatic relations. The US remains India’s largest trading partner, with bilateral trade recently valued at $190 billion.
India’s Ministry of External Affairs stated that the visit would “provide an opportunity for both sides to review the progress in bilateral relations” and allow the two leaders to “exchange views on regional and global developments of mutual interest.”
Bilateral trade agreement
Vance’s visit follows recent diplomatic engagements, including Director of National Intelligence Tulsi Gabbard’s participation in a geopolitical conference in India and Modi’s meeting with Trump in Washington two months ago.
During his visit to the US, Modi initiated discussions on a “mega partnership” with the US and began negotiations to mitigate the impact of Trump’s tariffs, which had already been reduced on certain US goods. Despite this, Trump imposed a 26% levy under his now-paused tariff programme, temporarily easing pressure on Indian exporters.
Modi expressed willingness to reduce additional tariffs on US goods, repatriate undocumented Indian nationals, and purchase military equipment. Both nations agreed to commence talks on a bilateral trade agreement.
On Friday, Modi revealed that he had spoken with Elon Musk, discussing potential collaboration in technology and innovation. He reiterated India’s commitment to strengthening partnerships with the US in these areas.
India’s deep ties to US business
India is a key partner of the US in bilateral trade, foreign direct investment, and defence cooperation. It also plays a strategic role in countering China’s influence in the Indo-Pacific region. As a member of the Quad, alongside the US, Japan, and Australia, India is seen as a counterbalance to China’s regional expansion.
Major US companies, including Apple and Google, have expanded operations in India. Recently, Musk’s Starlink signed agreements with two leading Indian telecom operators to provide satellite-based internet services.
The US and India have set an ambitious target to more than double bilateral trade to $500 billion by 2030 under the proposed trade agreement. The negotiations are particularly critical for India, as Trump’s reciprocal tariffs could impact sectors such as agriculture, processed food, auto components, high-end machinery, medical equipment, and jewellery. This poses a challenge for the Modi government, which aims to boost the economy and create jobs through export-led growth.
Modi and Trump already share rapport
Modi established a strong working relationship with Trump during his first term. The two leaders are expected to further enhance cooperation, particularly in trade, as Chinese President Xi Jinping positions Beijing as a reliable trade partner in the Asia-Pacific region amid rising tensions with Washington.
India has taken steps to strengthen ties with the US, including purchasing oil, energy, and defence equipment, such as fifth-generation stealth fighter jets. However, the US seeks greater market access for its agricultural and dairy products, which India has been hesitant to grant due to the sector’s significant role in employing the country’s workforce.
Family trip for Vance
Vance’s visit marks his first official trip to India and holds personal significance for the second family. His wife, Usha Vance, a practising Hindu, is the daughter of South Indian immigrants who moved to the US in the late 1970s.
In his memoir “Hillbilly Elegy,” Vance described Usha as a “supersmart daughter of Indian immigrants” whom he met at Yale Law School. During the visit, Vance will be accompanied by Usha, their children, and senior US administration officials. The family will visit Jaipur and Agra and participate in cultural engagements, according to a White House statement.
By RSS/AP