US Vice President JD Vance met Indian Prime Minister Narendra Modi on April 21, 2025, in New Delhi to discuss the ongoing negotiations for a US-India Bilateral Trade Agreement (BTA). Both leaders welcomed significant progress in the talks and formally announced the finalisation of the Terms of Reference (ToR) for the negotiations, which lays down a clear roadmap for future discussions focused on their shared economic priorities.

The BTA aims to establish a modern trade agreement designed to promote job creation and improve citizen well-being in both countries by enhancing bilateral trade and supply-chain integration in a balanced and mutually beneficial manner. The agreement is expected to open new growth opportunities for workers, farmers, and entrepreneurs, guided by India’s vision of "Amrit Kaal" and America’s "Golden Age".

This announcement follows a positive meeting between Prime Minister Modi and US President Donald Trump in Washington earlier in the year, where they reaffirmed the strength of the India-US Comprehensive Global Strategic Partnership and launched the India-US COMPACT initiative, which focuses on military partnership, accelerated commerce, and technology cooperation for the 21st century.

During Vance’s visit, which included his family and senior Trump administration officials, discussions also covered enhancing cooperation in energy, defence, strategic technologies, and other sectors. Both leaders exchanged views on regional and global issues, emphasizing dialogue and diplomacy as the preferred path forward.

The US Trade Representative highlighted the need to address the serious lack of reciprocity in the trade relationship with India, with the US running a $45.7 billion goods trade deficit with India in 2024. The BTA negotiations aim to increase market access, reduce tariff and non-tariff barriers, and secure commitments for long-term benefits.

The visit and agreement on the ToR come amid a backdrop of global trade tensions and recent US decisions to impose reciprocal tariffs on several countries, including India. The US has temporarily reduced new tariff rates to 10% for 90 days to facilitate negotiations, with hopes to conclude the first tranche of the BTA by fall 2025, potentially avoiding higher tariffs that would otherwise take effect.

Prime Minister Modi conveyed warm greetings to President Trump and expressed anticipation for his visit to India later in the year, underscoring the commitment to strengthening the bilateral relationship under the frameworks of "Make America Great Again" and "Viksit Bharat 2047".

The US and India have taken a significant step forward by finalizing the Terms of Reference for their Bilateral Trade Agreement negotiations, setting the stage for a comprehensive trade deal aimed at boosting economic cooperation, addressing trade imbalances, and fostering strategic partnerships across multiple sectors.

ANI