Vance and Modi meet in New Delhi to discuss trade deal and avoid U.S. tariffs

U.S. Vice-President JD Vance talks with Indian Prime Minister Narendra Modi during a meeting in New Delhi, India, Monday, April 21, 2025. (Indian Prime Minister's Office via AP)

NEW DELHI — U.S. Vice-President JD Vance held talks with Indian Prime Minister Narendra Modi on Monday as New Delhi looks to avoid American tariffs, negotiate a bilateral trade deal with Washington and strengthen ties with the Trump administration.

Vance, who is on a largely personal four-day visit to India, met with Modi at his residence in New Delhi and the two leaders “reviewed and positively assessed the progress in various areas of bilateral cooperation,” Modi’s office said in a statement. They also “welcomed the significant progress” in the negotiations of an expected trade deal between the two countries, the statement said.

The White House in a statement said that Vance and Modi set the terms for ongoing talks, “laying down a roadmap for further discussions.” It’s a sign that talks are moving forward but remain far from finalized, though Trump administration officials also spoke with their counterparts from India in a sign of the high level of engagement. The Trump administration has portrayed its strategy of tariffs as forcing negotiations that could limit the reach and influence of China, the world’s dominant manufacturer.

The U.S. is India’s largest trading partner and the two countries are now holding negotiations aiming to seal a bilateral trade agreement this year. They have set an ambitious target of more than doubling their bilateral trade to $500 billion by 2030. If achieved, the trade deal could significantly enhance economic ties between the two countries and potentially strengthen diplomatic ties as well.

Vance’s first visit to New Delhi came amid the backdrop of U.S. President Donald Trump’s partially-paused tariff program against most countries, including India. Earlier in April, Trump announced a 90-day pause in which imports from most countries would face a baseline 10% tax so that there was time to hold talks and possible structure broader deals. Trump has been personally involved in talks with Japan, but India’s size and potential enable it to possible be a counterbalance to China, which is New Delhi’s main rival in the region.

Vance is set to deliver a speech on Tuesday from Rajasthan International Centre in Jaipur, India, where he may provide more details on the trade talks.

Modi’s office said that the two leaders “noted continued efforts towards enhancing cooperation in energy, defense, strategic technologies and other areas” and “exchanged views on various regional and global issues of mutual interest, and called for dialogue and diplomacy as the way forward.”

Indian Foreign Ministry spokesperson Randhir Jaiswal said on Monday that Vance’s visit will “further deepen the India--U.S. comprehensive global strategic partnership.”

Vance combines business with pleasure

Vance was greeted with an Indian classical dance performance after he arrived at New Delhi’s Palam airport on Monday, following his visit to Rome, where he met with Pope Francis on Easter Sunday, a day before the pontiff’s death.

Vance was accompanied by his wife, Usha Vance, a practicing Hindu whose parents are from India, along with their three children and officials from the U.S. administration.

The family visited the Akshardham Hindu temple in New Delhi after their arrival and are expected to tour the iconic Taj Mahal monument and the 12th-century Amer Fort -- a UNESCO world heritage site -- during their trip.

India’s importance in counterbalancing China’s influence

India is a close partner of the U.S. and an important strategic ally in combating the rising influence of China in the Indo-Pacific region. It was also part of the Quad, which is made up of the U.S., India, Japan and Australia and is seen as a counterbalance to China’s expansion in the region. Trump is expected to attend a summit of Quad leaders in India later this year.

Washington has long sought to develop a deeper partnership with New Delhi, which is seen as a bulwark against China. Modi particularly established a good working relationship with Trump during his first term in office, and the two leaders are likely to further boost cooperation between their countries.

Modi was among the first leaders to visit the U.S. and hold talks with Trump after he returned to the White House. During his visit, he hailed a “mega partnership” with the U.S., and kickstarted a negotiation process to minimize the possible fallout of Trump’s tariffs.

The two leaders also said they planned to grow their defense partnership, with India signaling compliance with the Trump administration’s demands, saying it will purchase more oil, energy and defense equipment from the U.S. Modi also has cooperated with Trump’s moves to deport migrants as India has accepted many of its citizens from the U.S. in the past few months.

Regardless, Trump targeted India with a 26% levy, part of which has since been paused. However, he has continued to call India a “tariff abuser” and “tariff king.”

Trade talks are pressing for India

The trade negotiations are especially urgent for India, which could be hit hard by Trump’s tariffs, particularly in the agriculture, processed food, auto components, high-end machinery, medical equipment and jewelry sectors.

Harsh Vardhan Shringla, India’s former foreign secretary and ambassador to the U.S., said that Vance’s visit comes at a time of global upheaval in world trade. He said ties between New Delhi and Washington could see an upsurge under Trump’s presidency, mainly in technology-sharing and defense.

“U.S. trade policy under Trump offers an opportunity for India to embed itself in a bigger way in the U.S. markets and global supply chains,” Shringla said.

Modi’s government is also hoping to attract investment from Tesla and SpaceX CEO Elon Musk.

Last month, Musk’s Starlink entered into agreements with two of India’s top telecom operators to provide satellite-based internet services. Musk also indicated that he would visit India later this year after speaking last week with Modi, signaling that there could be progress in the electric carmaker’s push to enter the Indian market.

India is also a major defense partner of the U.S. It has in recent years embedded advanced American jets, helicopters, missiles and military gear into its armed forces. The two countries have announced plans to sign a 10-year framework later this year for strengthening their defense partnership.

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By Sheikh Saaliq

Associated Press writers Rajesh Roy and Josh Boak contributed reporting.