U.S. Vice President JD Vance has landed in New Delhi, India, for pivotal discussions with Prime Minister Narendra Modi, amid escalating global trade disputes.
What Happened: Vance arrived in Delhi on Monday, accompanied by his family. The Vice-President’s visit occurs amid rising trade tensions sparked by Donald Trump‘s tariff policies.
“The two sides will also exchange views on regional and global developments of mutual interest,” India’s foreign ministry stated ahead of Vance’s arrival, as per the BBC. Formal talks with Prime Minister Modi are scheduled for later in the day, followed by a dinner hosted by Modi.
Vance and Modi are primarily expected to assess the progress made on the bilateral agenda set forth in February during Modi's meeting with President Trump in Washington. The agenda includes “fairness” in their two-way trade. However, as per Reuters, it is unlikely that the two sides will finalize any deals during the visit.
Secondly, India and the U.S. are set to finalize a defense partnership framework this year, with India also planning to procure and co-produce arms such as Javelin anti-tank missiles and Stryker infantry combat vehicles, according to a joint statement from their February meeting.
Vance’s tour of India is also considered notable, especially with Trump’s anticipated visit later this year for the Quad summit, where leaders from Australia and Japan will also be present. Both India and the U.S. are expected to finalize a defense partnership framework during the year.
Harsh Pant, foreign policy head at the Observer Research Foundation, told Reuters, “The fact that the U.S.-China tensions are ramping up, and Vance in particular seems to have taken a very high profile role in American diplomacy, also means that the visit assumes an added layer of significance.”
Why It Matters: Trump, who has previously labeled India a tariff “abuser,” had announced a tariff of 26% on India before temporarily pausing it on April 9. New Delhi is hopeful of securing a trade deal with the U.S. within the 90-day pause on tariff hikes announced by Trump.
India has already lowered tariffs on certain U.S. goods since January, with additional cuts anticipated as the trade balance heavily favors Delhi, which currently holds a $45 billion trade surplus. These goods have included fish hydrolysate, synthetic flavoring essences, Ethernet switches, bourbon whiskey, and motorcycles. Moreover, the 6% Equalization Levy has been abolished, resolving concerns from the USTR regarding its effect on U.S. companies in India.
In 2024, the U.S. became India’s largest trading partner, with bilateral trade totaling $129 billion and India maintaining a $45.7 billion surplus, according to U.S. government trade data.
Prime Minister Modi was one of the first leaders to meet Trump after his inauguration, celebrating a “mega partnership” with the U.S. The two leaders set an ambitious goal to more than double bilateral trade to $500 billion, announcing a deal for India to increase imports from America, including oil and gas.
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