Prime Minister Narendra Modi and US Vice President JD Vance met in New Delhi on April 21, 2025, where they welcomed the “significant progress” achieved in the ongoing negotiations for a mutually beneficial India-US Bilateral Trade Agreement (BTA). This high-level engagement comes at a critical juncture, as both countries aim to finalise the first tranche of the BTA by fall 2025, marking a new phase in their economic partnership.

During the meeting, both leaders positively assessed advancements in bilateral cooperation across multiple sectors, including energy, defence, and strategic technologies. They also exchanged views on various regional and global issues, emphasising dialogue and diplomacy as the preferred approach to resolving differences.

The BTA negotiations are part of a broader ambition to more than double bilateral trade to $500 billion by 2030, an initiative referred to as “Mission 500.” The agreement is expected to address longstanding trade barriers, increase market access, and reduce both tariff and non-tariff barriers. The US, which ran a $45.7 billion goods trade deficit with India in 2024, has welcomed India’s recent tariff reductions and its willingness to further open its market to US products as part of the BTA process.

The Terms of Reference for the BTA, announced during this visit, establish a roadmap for multi-sector negotiations aimed at ensuring long-term, mutually beneficial outcomes. The agreement is designed to catalyse opportunities for military partnership, accelerated commerce, and technology collaboration under the U.S.-India COMPACT framework, launched during Prime Minister Modi’s earlier visit to Washington DC in February 2025.

Vice President Vance’s visit, his first to India, also includes stops in Jaipur and Agra, and is seen as a signal of the Biden-Trump administration’s commitment to deepening strategic and economic ties with India amid ongoing global trade tensions. The US has recently reduced new tariff rates on most trade partners, including India, to 10 percent for 90 days to facilitate ongoing negotiations.

Both leaders reiterated their commitment to expanding trade and investment, making their nations stronger and economies more innovative, and ensuring resilient supply chains. Prime Minister Modi extended his best wishes to Vice President Vance and his family for a pleasant stay in India and conveyed his greetings to President Trump, expressing anticipation for the latter's visit to India later in the year.

The Modi-Vance meeting underscores the accelerating momentum in India-US trade negotiations, with both sides targeting a landmark agreement by the end of 2025 that is expected to reshape the bilateral economic landscape and reinforce their strategic partnership.

ANI