India-US ties: Modi, Vance praise progress in trade talks as higher tariffs loom?
India and the United States have made “significant progress” in their bilateral trade talks during U.S. Vice President JD Vance’s visit to India, where he met with Prime Minister Narendra Modi. Both leaders praised the advancements and laid down a roadmap for further negotiations toward a new and modern bilateral trade agreement (BTA) aimed at promoting job creation, citizen well-being, and balanced trade.
The talks are focused on addressing key issues including tariffs, non-tariff barriers, customs facilitation, and expanding cooperation in sectors like agriculture, automobiles, defense, energy, and strategic technologies. The U.S. aims to reduce Indian tariffs in important sectors, which could open the Indian market wider to U.S. goods and help balance trade.
This progress is seen as crucial because the U.S. had threatened to raise tariffs on Indian exports from 10% to 26% if no deal was reached by the end of a 90-day tariff suspension period in July 2025. The ongoing negotiations aim to avoid these higher tariffs and strengthen economic ties, with a shared goal to more than double bilateral trade to $500 billion by 2030.
Both Modi and Vance emphasized the mutual benefits of the agreement, highlighting the potential for growth opportunities for workers, farmers, and entrepreneurs in both countries, and the importance of integrating supply chains in a balanced and mutually beneficial manner.
India-US trade talks have progressed positively with high-level engagement and mutual commitment to finalize a bilateral trade deal that could avert looming tariff hikes and significantly enhance economic cooperation between the two nations.
