PM Modi, JD Vance Welcome 'Significant Progress' In India-US Trade Deal, Energy, Defence Ties

US Vice President JD Vance and Prime Minister Narendra Modi welcomed "significant progress" in negotiations for an early trade agreement between their two nations, according to a statement from Modi's office on Monday, reported Reuters.

New Delhi is aiming to avert US tariffs and strengthen its ties with the Trump administration.

Photo Credit: PMO via PTI Photo

Vance arrived in India earlier on Monday for a largely personal four-day trip with his family, during which he plans to visit the Taj Mahal and deliver a speech in Jaipur, US officials confirmed.

Following their discussions, Modi's office stated that both leaders "noted continued efforts towards enhancing cooperation in energy, defence and strategic technologies, among others."

They also discussed "regional and global issues" and reiterated the importance of "dialogue and diplomacy as the way forward"-a standard line often used by India in reference to international conflicts, such as the war in Ukraine, though none were named directly.

"The prime minister conveyed his warm greetings to President Trump and said that he looked forward to his visit to India later this year," the statement added.

The US has yet to release a statement detailing the outcome of the talks. Vance's wife, Usha, is of Indian origin-her parents are immigrants from India. Vance arrived in New Delhi after visiting Rome, where he had a private audience with Pope Francis on Easter Sunday.

During their meeting, Modi and Vance reviewed and positively evaluated the developments across various areas of bilateral cooperation that were outlined during Modi's visit to Washington in February to meet President Donald Trump.

rThis included commitments to "fairness" in trade relations and a deepening of the defence partnership.

'Need pact with largest trade partner'

Modi was among the first global leaders to meet Trump after he took office.

According to a previous Reuters report, Modi's government is open to reducing tariffs on more than half of US imports-which amounted to $41.8 billion in 2024-as part of a potential trade agreement.

However, President Trump has consistently referred to India as a "tariff abuser" and "tariff king."

Speaking ahead of Vance's visit, Indian foreign ministry spokesperson Randhir Jaiswal said, "We are very positive that the visit will give a further boost to our bilateral ties."

The US is India's largest trading partner, with bilateral trade reaching $129 billion in 2024, including a $45.7 billion trade surplus in India's favour, according to US government data.

New Delhi is hopeful of securing a trade deal with the US within the 90-day window granted by Trump from 9 April, during which tariff increases have been paused for major trading partners.

Indian Finance Minister Nirmala Sitharaman, speaking in San Francisco on Monday, said the country hopes to "positively conclude" the first phase of the agreement by autumn.

"The long and short of engaging with the U.S. is not just for this reciprocal tariff-related matter, but in the interest of... our largest trading partner with whom we need to have an agreement," she told members of the Indian diaspora.

Vance's visit is also being viewed as preparation for Trump's expected trip to India later this year for the Quad summit-an event bringing together leaders from India, Australia, Japan and the US.

Harsh Pant, Head of Foreign Policy at the Observer Research Foundation in Delhi, said the timing of the visit was significant given the context of trade negotiations.

"The fact that the US-China tensions are ramping up, and Vance in particular seems to have taken a very high profile role in American diplomacy, also means that the visit assumes an added layer of significance," he observed.