India’s PM Modi and U.S. VP Vance see a positive outcome for bilateral trade agreement

India’s Prime Minister Narendra Modi and U.S. Vice President JD Vance on April 21st praised the ‘significant’ progress made in trade talks between the two countries during Vance’s–rather more personal–visit to India. Vance and Modi noted ‘continued efforts’ to enhance cooperation in energy, defense, and strategic technologies.

U.S. Vice President JD Vance welcomed ‘positive progress’ in talks with Indian Prime Minister Narendra Modi on April 21st. New Delhi wants to avoid American tariffs, negotiate a bilateral trade deal with Washington, and strengthen ties with the Trump administration. Senior Indian officials and some analysts reportedly took Mr. Vance’s presence in India as a sign that the U.S. intended to continue working toward the bilateral trade agreement outlined by Mr. Trump and Mr. Modi when the Indian leader visited Washington in February.

The two leaders also exchanged views on various regional and global issues of mutual interest and called for dialogue and diplomacy. India was hit with a 26% ‘reciprocal’ tariff on April 2nd, before the levies were suspended for 90 days by Trump on April 9, leaving a 10% baseline tariff.

Modi conveys optimism for bilateral trade amid calls for more dialogue from both leaders

PM Modi, US VP Vance announce finalization of Terms of Reference for Bilateral Trade Agreement negotiations. Separately US Trade Rep says ‘there is a serious lack of reciprocity in the trade relationship with India.
India’s constructive engagement has been welcomed.
Goals for…

— Shereen Bhan (@ShereenBhan) April 22, 2025

Modi stated that both he and Vance reviewed the–largely positive–fast-paced progress on trade talks following his visit to the U.S. and meeting with President Trump. He particularly mentioned that they were committed to mutually beneficial cooperation in trade, technology, defense, energy, and people-to-people exchanges. According to Modi, the India-U.S. Comprehensive Global Strategic Partnership will be a defining partnership of the 21st Century for a better future for both countries and the world. The two leaders also exchanged views on various regional and global issues of mutual interest and called for more dialogue and diplomacy.

U.S. Trade Representative Jamieson Greer said on Monday that the USTR and India’s Ministry of Commerce and Industry had finalized the terms of reference to lay down ‘a roadmap’ for the discussions on bilateral trade. He added that although there was a ‘serious lack of reciprocity in the trade relationship with India’, India’s constructive engagement so far had been welcomed, and he looked forward to creating more opportunities for workers, farmers, and entrepreneurs in both countries. 

“I am pleased to confirm that USTR and India’s Ministry of Commerce and Industry have finalized the Terms of Reference to lay down a roadmap for the negotiations on reciprocal trade.”

-Ambassador Jamieson Greer, U.S. Trade Representative 

According to the office of the U.S. Trade Representative, U.S. total goods trade with India was estimated at $129 billion in 2024, while India’s surplus with the U.S. reached $45.7 billion. Modi met Trump back in February, and they both agreed to more than double bilateral trade between New Delhi and Washington to $500 billion by 2030.

Vance praises Modi as they launch the COMPACT initiative 

U.S. Vice President Vance called Prime Minister Modi a ‘great leader’ as he expressed gratitude for the warm hospitality extended to him and his family at PM Modi’s residence. He praised Modi for being ‘incredibly kind’ and shared his hopes for stronger U.S.-India relations under Trump’s leadership. The two leaders also discussed the India-U.S. COMPACT, a new initiative aimed at boosting defense, technology, and trade cooperation. The Bilateral Trade Agreement is part of the broader COMPACT program, which began in February 2025.

The COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology) focuses on mutual trust and citizen engagement, as both leaders describe it as a step toward a defining 21st-century partnership. 

However, Vance’s visit was not just political—it also carried personal and cultural significance, as per the Economic Times. The Vance family visited Akshardham Temple in Delhi before heading to Jaipur. The family’s stop in Jaipur and their temple visit were seen as gestures of goodwill. Union minister Ashwini Vaishnaw received them at Delhi airport, highlighting the importance of the visit. A visit to the Taj Mahal in Agra is also part of the itinerary.

Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More