India and the United States signaled significant progress in finalizing a bilateral trade agreement after Prime Minister Narendra Modi met with US Vice-President JD Vance in New Delhi on Monday night. The meeting, part of Vance’s ongoing four-day visit to India with his family, also saw discussions on deepening ties across sectors such as defence, energy, and strategic technology.
“We are committed to mutually beneficial cooperation, including in trade, technology, defence, energy and people-to-people exchanges,” Modi posted on X, following their meeting. He also hosted a private dinner for Vance, his wife, and their three children at his official residence.
The trade talks take place against the backdrop of a temporary 90-day pause on increased US tariffs, announced by President Donald Trump. India, which was facing proposed tariffs as high as 27% on its exports to the US, has used the window to engage in accelerated negotiations. The tariff reprieve ends on July 9, prompting urgency in finalizing a deal.
While Modi and Trump have maintained a friendly personal rapport—Modi was one of the first foreign leaders to visit Trump after the start of his second term—the US president has not held back in criticizing India’s trade policies, branding the country a “tariff king” and accusing it of unfair trade practices.
In a statement after Monday’s talks, US Trade Representative Jamieson Greer reiterated longstanding US concerns, pointing to the “serious lack of reciprocity” in its trade relationship with India. Washington is particularly pushing for greater access to India’s protected agricultural sector, including the sale of American corn—something Indian officials are reluctant to concede due to domestic sensitivities.
India has already lowered tariffs on a range of goods and is reportedly considering more reductions to advance negotiations. However, agriculture and digital trade remain key sticking points in the discussions.
Beyond trade, Modi and Vance discussed broader strategic collaboration, including defence, energy security, and emerging technologies. The Indian prime minister also expressed anticipation for President Trump’s upcoming visit to India later this year, likely during the Quad summit that Delhi is set to host.
The bilateral meeting concluded with delegation-level discussions and the dinner hosted by Modi, underscoring the warmth between the two countries even as complex trade issues remain under negotiation.
