US Vice President JD Vance is on a four-day visit to India on Monday as the two countries seek to unlock economic opportunities and negotiate a bilateral trade deal.
Vance will meet Prime Minister Narendra Modi in New Delhi for talks on the economy, trade and geopolitical ties.
Vance’s visit is seen as an important diplomatic mission by President Donald Trump’s administration, and it coincides with a rapidly intensifying trade war between Washington and Beijing, which is New Delhi's main rival in the region.
A trade deal between India and the US could significantly enhance economic ties between the two countries and potentially strengthen diplomatic ties.
The US is India’s largest trading partner, with bilateral trade valued at $190 billion until recently.
India is a close partner of the US for bilateral trade, foreign direct investments, defence cooperation, and an important strategic ally in combating the rising influence of China in the Indo-Pacific region.
Modi was among the first leaders to visit the US and hold talks with Trump after he returned to the White House.
During his visit, Modi hailed a “mega partnership” with the US and kickstarted a negotiation process to minimise the possible fallout of Trump’s tariffs after it had already cut tariffs on a range of US goods.
Regardless, Trump targeted India with a 26% levy as part of his now-paused tariff programme, which has provided temporary relief for Indian exporters.
During his visit, Modi sought to soften impending trade barriers by saying he was open to reducing more tariffs on US goods, repatriating undocumented Indian nationals and buying military gear.
The two countries also agreed to start talks towards clinching the bilateral trade agreement.
To further boost trade ties, the US and India have set an ambitious target of more than doubling their bilateral trade to $500 billion by 2030 under the expected trade deal agreement.
The negotiations are especially urgent for New Delhi as it could be hit hard by Trump’s reciprocal tariffs, particularly in sectors of agriculture, processed food, auto components, high-end machinery, medical equipment and jewelry.
This poses a significant challenge for the Modi government as it hopes to spruce up the country's economy and generate jobs with an export-led recovery.
Vance’s visit to India marks his first official trip to the country, which has added significance for the second family.
His wife Usha Vance — a practising Hindu — is the daughter of immigrants from South India.
Vance will be accompanied by Usha, their children and other senior members of the US administration, and the couple will visit the Indian cities of Jaipur and Agra and participate in engagements at cultural sites, a readout from the White House said.
(Associated Press)
