PM Modi, US VP Vance welcome 'significant progress' in negotiations for trade pact
Public Lokpal
April 22, 2025
PM Modi, US VP Vance welcome 'significant progress' in negotiations for trade pact
NEW DELHI: India and the US said Monday that they made "significant progress" in negotiations for a mutually beneficial bilateral trade pact as Prime Minister Narendra Modi and US Vice President JD Vance held wide-ranging talks focusing on boosting cooperation in areas of defence, energy and strategic technologies.
The talks took place hours after Vance, accompanied by Indian-origin Second Lady Usha Chilukuri, and their three children -- sons Ewan, Vivek and daughter Mirabel, landed in Delhi on a largely personal four-day visit to India that comes amid growing global tensions over the US's tariff war.
The White House said Vance and Modi welcomed "significant progress" in the negotiations for the trade pact and formally announced the "finalisation of the terms of reference" for the negotiations, laying down a roadmap for further discussions about our economic priorities.
Following the talks, Modi hosted Vance and his family over dinner at his 7 Lok Kalyan Marg residence that was also joined by several Union Cabinet ministers and American officials.
The prime minister's office said Modi conveyed to Vance his warm greetings for President Donald Trump and said that he looked forward to his visit to India later this year.
In a social media post, Modi said the India-US comprehensive global strategic partnership will be a defining partnership of the 21st century for a "better future of our people and the world".
New Delhi and Washington are holding negotiations to seal a bilateral trade agreement (BTA) as agreed during Modi's talks with Trump in Washington DC in February.
The trade pact is expected to address a variety of issues including tariff and market access. India is looking at firming up the first tranche of the trade pact before Trump's pause on the customised reciprocal tariffs lapses.
The White House said the trade pact (BTA) "presents an opportunity" to negotiate a new and modern agreement focused on promoting job creation and citizen well-being in both countries, with the goal of enhancing bilateral trade and supply-chain integration in a balanced and mutually beneficial manner.
Modi and Vance, who last met on the margins of the AI Action Summit in Paris in February, also exchanged views on various regional and global issues of mutual interest including the Russia-Ukraine conflict, and called for "dialogue and diplomacy" as the way forward.
The Indian readout said Modi and Vance "reviewed and positively assessed" the progress in various areas of bilateral cooperation.
"They welcomed the significant progress in the negotiations for a mutually beneficial India-US Bilateral Trade Agreement focused on the welfare of the people of the two countries," it said.
"Likewise, they noted continued efforts towards enhancing cooperation in energy, defence, strategic technologies and other areas," it noted.
It further said Modi and Vance also "exchanged views on various regional and global issues of mutual interest, and called for dialogue and diplomacy as the way forward".
Trump is expected to visit India later this year to attend the annual summit of the Quad grouping.
Last month, US assistant trade representative Brendan Lynch visited India and held talks with his Indian interlocutors on firming up the BTA.
The US president's tariff tussle has stoked fears of a global trade war.
Days after announcing the reciprocal tariffs, Trump announced a 90-day pause on them for all countries, except China.
Washington is also pushing New Delhi to buy more American oil, gas and military platforms to bring down the trade deficit that stands at around USD 45 billion in India's favour.
Meanwhile, on arriving in New Delhi, Vance and family made their first stop at Swaminarayan Akshardham temple in East Delhi.
He is the first US Vice President to visit India in 12 years after Joe Biden visited New Delhi in 2013.
Vance left Delhi on Monday night and arrive in Jaipur. He is staying at Hotel Rambagh Palace. The Vice President will visit the Amer Fort and deliver an address on the US-India relations at Rajasthan International Centre on Tuesday.
On Wednesday, the couple will fly to Agra to see the Taj Mahal.
PTI
