Modi, Vance welcome progress on trade deal; discuss strategic cooperation

New Delhi: Prime Minister Narendra Modi on Monday held wide-ranging talks with US Vice President JD Vance in New Delhi, with both sides welcoming progress on the proposed bilateral trade agreement and affirming deeper cooperation across energy, defence, and strategic technologies.

According to an official statement, the two leaders positively assessed the trajectory of India–US ties and “exchanged views on various regional and global issues of mutual interest.” The meeting comes as the two nations are negotiating the first tranche of a bilateral trade agreement, with a target to conclude it by fall 2025.

Vance’s visit — the first by an American vice president to India in 12 years — comes on the heels of high-level trade diplomacy and follows his stop in Italy. He was accompanied by his Indian-origin wife Usha Chilukuri and a high-level delegation of US officials. Prime Minister Modi also hosted the couple for a formal dinner following the talks.

Officials said the meeting reviewed the overall state of bilateral cooperation and noted continued efforts to expand ties in sectors including strategic technologies, energy collaboration, and defence industrial partnership.

The two sides also discussed Washington’s recent trade actions. Last month, President Donald Trump imposed — and then paused — sweeping reciprocal tariffs on around 60 countries, including India. The move sparked global concern over a renewed trade war. The ongoing negotiations aim to smooth over tariff tensions and address issues related to market access and trade deficit, with the US urging India to import more American energy and defence products.

In the financial year 2023–24, the US was India’s third-largest source of foreign direct investment (FDI), with inflows worth $4.99 billion. The US was also India’s largest trading partner in 2023, with bilateral goods and services trade crossing $190 billion.

Modi conveyed his greetings to US President Donald Trump during the meeting and said he looked forward to welcoming him to India later this year. The two leaders had last met in Washington DC in February, where they announced the intent to negotiate a trade deal in phases.

Vice President Vance and his family will also visit Jaipur and Agra during their four-day trip to India.