US Vice President JD Vance, on a four-day visit to India, held a significant closed-door meeting with Prime Minister Narendra Modi in New Delhi. This high-level engagement comes amid escalating global economic uncertainty, particularly the ongoing trade tensions between the United States and China.
The discussions were followed by delegation-level talks, highlighting the urgency on both sides to finalize a long-awaited India-US bilateral trade agreement. According to officials, negotiations are in their advanced stage, with efforts underway to wrap up the deal by the end of May.
90-day tariff pause seen as opportunity for breakthrough
The trade talks gained momentum after the US paused new reciprocal tariffs—originally a 26% hike on Indian goods—introduced by President Donald Trump. Economists see this 90-day suspension as a crucial window to strike a “win-win” agreement that meets the priorities of both nations.
India, however, has asserted that it will not accept any rushed terms. Officials in New Delhi have stated that any agreement must protect India’s economic interests and reflect mutual respect.
Sector-specific talks and ministerial meetings lined up
Sources indicate that sector-specific negotiations will take place this week following the Modi-Vance meeting. Additionally, Finance Minister Nirmala Sitharaman is expected to advance the discussions during her visit to Washington for the upcoming IMF summit.
Focus on technology and clean energy investment
India is also pushing for increased American investment in sectors such as clean energy, automobiles, manufacturing, and digital technologies. During the meeting, Vance and Modi discussed avenues to strengthen business-to-business ties in these critical areas.
The conversation comes shortly after PM Modi spoke with tech entrepreneur Elon Musk. Musk hinted at visiting India later this year, sparking speculation about Tesla, Starlink, or SpaceX entering the Indian market.
In another boost to US-India cooperation, Holtec International recently received clearance to co-develop nuclear power plants in India. The company, promoted by Indian-American Krishna P Singh, already operates its engineering division in Pune and runs a manufacturing plant in Gujarat’s Bharuch district.
Defence and strategic collaboration also on table
While trade dominated the talks, both leaders also reviewed progress in defence and strategic technologies. According to a government statement, areas like energy and advanced defence systems were also part of the discussion.
Although no specific outcomes were mentioned, the meeting builds upon earlier proposals from the US, including an offer to supply F-35 stealth fighter jets. India’s status as a Major Defence Partner under Strategic Trade Authorization-1 allows it access to cutting-edge American technology, placing it on par with US NATO allies.
Looking ahead
PM Modi recalled his recent visit to Washington DC and discussions with President Trump, underlining the shared vision between ‘Make America Great Again’ and ‘Viksit Bharat 2047’. The leaders reaffirmed their commitment to expanding strategic cooperation across economic, defence, and technological domains.