India’s Modi and U.S. VP Vance Signal Optimism Over Bilateral Trade Talks

On April 21st, Indian Prime Minister Narendra Modi and U.S. Vice President JD Vance praised the “significant progress” made in trade negotiations between India and the United States, during what was also a personal visit for Vance and his family. Both leaders reaffirmed their commitment to deepening cooperation in energy, defense, and strategic technologies.

VP Vance, representing the Trump administration, welcomed the positive momentum in discussions with PM Modi. New Delhi aims to avoid additional American tariffs and is pushing for a comprehensive bilateral trade deal with Washington. The presence of Vance in India was interpreted by senior Indian officials and analysts as a strong signal of U.S. intent to pursue the trade agreement first outlined during Modi’s February visit to Washington.

Modi and Vance also exchanged views on key regional and global issues, reiterating their shared commitment to diplomacy and dialogue. The trade discussions have gained urgency after India was hit with a 26% reciprocal tariff on April 2nd. However, President Trump suspended the levies for 90 days on April 9, maintaining a 10% baseline tariff in the interim.

Trade Talks Advance: Terms of Reference Finalized

In a joint announcement, PM Modi and VP Vance revealed that the Terms of Reference for formal bilateral trade agreement negotiations have been finalized. U.S. Trade Representative Jamieson Greer acknowledged the “serious lack of reciprocity” in the current trade relationship, but also noted that India’s constructive engagement has been encouraging.

“I am pleased to confirm that USTR and India’s Ministry of Commerce and Industry have finalized the Terms of Reference to lay down a roadmap for the negotiations on reciprocal trade,” Greer said on Monday.