NEW DELHI — The U.S. Vice President JD Vance has embarked on a significant four-day visit to India, commencing on Monday. This visit aims to explore economic opportunities and work towards a potential bilateral trade agreement between the two countries.
In New Delhi, Vance is scheduled to meet with Prime Minister Narendra Modi for discussions focused on economic, trade, and geopolitical relations. Vance’s trip is regarded as a crucial diplomatic initiative under President Donald Trump’s administration and comes amidst an escalating trade conflict between Washington and Beijing, which is a major competitor of New Delhi in the region.
A successful trade agreement between India and the U.S. promises to deepen economic ties and potentially reinforce diplomatic relations as well. The United States currently stands as India’s largest trading partner, with recent bilateral trade reaching an approximate value of $190 billion.
India’s Foreign Ministry has indicated that this visit will serve as “an opportunity for both sides to review progress in bilateral relations,” and both leaders will exchange views on various regional and global developments that are of mutual interest.
Regarding the bilateral trade agreement, Vance’s visit comes after the recent visit by Director of National Intelligence Tulsi Gabbard to India for a geopolitical conference. It also follows Modi’s visit to Washington, where he had discussions with Trump.
Modi was quick to establish relations with Trump after his renewed tenure in the White House, and during his Washington visit, hailed the potential for a mega partnership, initiating discussions to mitigate the effects of Trump’s tariffs. While Trump had imposed a 26% levy as part of his tariff strategy, a pause in this program has offered temporary relief to Indian exporters.
In Washington, Modi expressed willingness to alleviate trade barriers by offering tariff reductions on U.S. goods, repatriating undocumented Indian nationals, and purchasing American military equipment. Furthermore, both countries have agreed to pursue a dialogue to realize a bilateral trade agreement.
Modi recently highlighted discussions with Tesla and SpaceX CEO Elon Musk, emphasizing opportunities for collaboration in technology and innovation, reinforcing India’s commitment to nurturing partnerships with the U.S.
India has developed robust connections with the U.S. in various aspects, including bilateral trade, foreign direct investments, defense cooperation, and as a strategic ally in countering China’s sway in the Indo-Pacific arena. India also contributes to the Quad—a coalition encompassing the United States, Japan, and Australia—serving as a counterweight to China’s growing influence.
Several leading U.S. corporations, including Apple and Google, have expanded their footprint in India in recent times. Additionally, Musk’s Starlink has commenced partnerships with major Indian telecom firms for satellite internet services.
The U.S. and India aim to significantly enhance their trade relations, targeting doubling their bilateral trade value to $500 billion by 2030 under the awaited trade agreement. Negotiations hold special importance for India, given Trump’s reciprocal tariffs could impact sectors like agriculture, processed foods, auto parts, high-end machinery, medical tools, and jewelry, challenging Modi’s government as it seeks to spur economic growth and employment through exports.
Modi and Trump have already forged strong ties, which are likely to be strengthened further, especially in the trade domain. Meanwhile, Chinese President Xi Jinping is seeking to position China as a dependable trade ally in the Asia-Pacific amidst simmering tensions with the U.S.
India has already initiated moves to appeal to Trump by agreeing to purchase more energy and defense items, including sophisticated fighter jets, from the U.S. Conversely, the U.S. demands more access to Indian markets for its agricultural and dairy exports, but India hesitates as its agriculture sector employs a considerable portion of the population.
Adding a personal touch to this diplomacy, Vance’s visit holds familial significance as it marks his first official venture to India. His wife, Usha Vance, with roots tracing back to South India, and a follower of Hinduism, accompanies him. Vance has often referred to Usha in his memoir “Hillbilly Elegy” as a highly intelligent individual of Indian heritage, whom he met during their time at Yale Law School. The couple is joined by their children and top U.S. dignitaries, with plans to explore cultural landmarks in Jaipur and Agra during their stay.