Kathmandu. US Vice President JD Vance arrived in India on Monday on a four-day visit as the US and India seek to open up economic opportunities and negotiate a bilateral trade deal. Vance will meet Prime Minister Narendra Modi in New Delhi to discuss the economy, trade and geopolitical ties.
Vance’s visit is seen as a significant diplomatic mission by President Donald Trump’s administration and comes at a time when the trade war between Washington and Beijing is rapidly escalating. Beijing is New Delhi’s main rival in the region. A trade deal between India and the US could significantly boost economic ties between the two countries and potentially strengthen diplomatic ties.
The US is also India’s largest trading partner, with bilateral trade currently worth $190 billion. India’s Ministry of External Affairs said the visit will “provide an opportunity for both sides to review the progress made in bilateral relations” and that the two leaders will “exchange views on regional and global developments of mutual interest”.
Bilateral trade agreement
Vance’s arrival in India comes weeks after Director of National Intelligence Tulsi Gabbard visited India for a geopolitical summit and two months after Modi met Trump in Washington. Modi was one of the first leaders to travel to the US to hold talks and meet Trump after returning to the White House. During his visit, Modi praised the “mega partnership” with the US and began talks to mitigate the potential impact of Trump’s tariffs, after already cutting tariffs on a wide range of US goods.
However, Trump has targeted India with a 26 percent levy as part of his now-suspended tariff program. This has provided temporary relief to Indian exporters. During his visit, Modi sought to soften the looming trade barriers by saying he was ready to further cut tariffs on US goods, repatriate undocumented Indian nationals and purchase military equipment.
The two countries also agreed to start talks towards a bilateral trade agreement. Modi said he spoke to Elon Musk on Friday and “discussed the immense potential for collaboration in the areas of technology and innovation” with the SpaceX CEO, adding that “India is committed to advancing our partnership with the US in these areas.”
India’s deep ties with US businesses
India is a close partner of the US in bilateral trade, foreign direct investment, defence cooperation and an important strategic ally in countering China’s growing influence in the Indo-Pacific region. It is also part of the Quad, made up of the US, India, Japan and Australia. The Quad is seen as a counterbalance to China’s expansion in the region.
Major US companies such as Apple Inc and Google have expanded their operations in India in recent years. Last month, Musk’s Starlink signed deals with two of India’s top telecom operators to provide satellite-based internet services. The US and India have set an ambitious goal of doubling their bilateral trade to more than $5 trillion by 2030 under the expected trade deal.
The talks are particularly important for New Delhi as it could be hit hard by Trump’s reciprocal tariffs, particularly in the agriculture, processed food, auto components, high-end machinery, medical devices and jewelry sectors. This presents a significant challenge for the Modi government, which hopes to revive the country’s economy and create jobs while regaining its export-led leadership.
Modi and Trump already have a good working relationship
Modi had established a good working relationship with Trump during his first term. The two leaders are likely to further enhance their countries’ cooperation, especially on trade, as Chinese President Xi Jinping aims to position Beijing as a reliable trading partner in the Asia-Pacific region amid rising tensions with Washington. India has also already taken several steps to win over Trump. India will buy more oil, energy and defence equipment from the US, including fifth-generation stealth fighter jets.
However, the US wants greater market access for its agricultural and dairy products in India, but New Delhi has so far been reluctant as the agricultural sector employs most of the country’s workers.
A family trip for Vance
Vance’s visit to India is his first official visit to the country. The visit has added significance for the second family. His wife, Usha Vance, is a practising Hindu – the daughter of immigrants from South India. In his memoir, Hillbilly Elegy, Vance describes his wife as “the highly intelligent daughter of Indian immigrants.” He met Usha at Yale Law School. Usha’s parents immigrated to the United States in the late 1970s. Vance will be accompanied by Usha, their children, and other senior members of the U.S. administration. The couple will visit the Indian cities of Jaipur and Agra and attend cultural events.
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