In a bid to fortify ties and expand trade, U.S. Vice President JD Vance has made a significant call for increasing engagement between the United States and India. During his visit to India, Vance emphasized the importance of India purchasing more defense equipment and energy from the U.S. He also urged India to provide wider market access for American products, all of which align towards finalizing a prospective bilateral trade deal.
Spending four days in India, Vance and Indian Prime Minister Narendra Modi progressed in their trade discussions on Monday, reaching a consensus on the terms of reference for future trade negotiations. Establishing these guidelines is essential for setting the stage for a comprehensive trade agreement down the line.
A concrete target has been set by both nations to solidify a trade agreement within the year, aiming to more than double the existing trade to reach $500 billion by 2030. If realized, such an agreement would not only enhance economic exchanges but also potentially bolster diplomatic relations between the two countries.
Speaking at an event in Jaipur, the Vice President expressed his optimistic vision for collaborative achievements between India and the U.S. Accompanied by his family, Vance’s first visit to New Delhi occurs against the backdrop of former President Donald Trump’s interim tariff measures. Earlier, the Trump administration had paused tariffs on imports globally, including those from India, creating a window for negotiations to form broader trade deals.
The urgency of the trade talks cannot be overstated for India, as favorable negotiations could help the nation avert steep tariffs from the U.S. Concurrently, the Trump administration’s strategy of imposing tariffs is seen as a method to counteract China’s economic dominance, painting New Delhi’s economic positioning in the region in a competitive light.
At the same event, Vance offered reassurance regarding Trump’s tariff policies, framing them as part of a broader mission to strike a global balance and foster mutual prosperity. The objective is to maintain equitable trade terms with allies like India, aiming for partnerships rooted in fairness and national interests.
“Fair trade and shared national interests are at the heart of the Trump administration’s strategy,” Vance articulated, underscoring the need for trade relationships that respect labor standards and economic equity.
Throughout his visit, Vance articulated his belief in the potential of U.S.-India cooperation to usher in an era of prosperity and peace in the 21st century. He critiqued previous administrations for perceiving India primarily as a source of cheap labor and underscored the importance of equal bilateral respect.
With an eye towards strengthening ties with New Delhi, Washington positions India as a strategic counterbalance to China’s regional ambitions. Prime Minister Modi, having cultivated a positive rapport with Trump, has already engaged in discussions with the U.S. to mitigate any adverse effects stemming from American tariffs, as well as to further defense cooperation.
Being part of the strategic Quadrilateral Security Dialogue (Quad), which includes the U.S., Japan, and Australia, India is an essential defense partner of the U.S. The country enjoys an elevated status of defense association with Washington, shared only with a select group of allies.
In line with Trump’s initiatives, Vance expressed the U.S. intent to deepen defense ties with India by proposing more sales and collaborative productions of advanced military technology. He specifically highlighted plans for India to consider acquiring Washington’s state-of-the-art F-35 stealth fighter.
Historically reliant on Russian military technology, India has gradually diversified its defense acquisitions by incorporating supplies from the U.S., as well as from France and the U.K. Recent years have seen India integrating advanced American aircraft, missiles, and other equipment into its defense forces, with anticipations of signing a decade-long framework agreement later this year to enhance their defense collaboration further.