India, US hail breakthrough in trade talks during Vance-Modi meeting

Signaling a pivotal moment in Indo-US economic relations, Prime Minister Narendra Modi and US Vice President JD Vance on April 21 “welcomed significant progress” in bilateral trade negotiations, laying the groundwork for what both sides described as a “new and modern trade agreement.”

In the first senior-level White House visit since President Donald Trump’s second-term inauguration, Vance met Modi at the Prime Minister’s official residence at 7, Lok Kalyan Marg, for both one-on-one and delegation-level talks. The meeting was followed by a formal dinner hosted for the visiting second family.

The leaders acknowledged advances in finalizing a broad-based Bilateral Trade Agreement (BTA), expressing optimism about its potential to foster economic growth, job creation, and deeper supply-chain integration. According to the Prime Minister’s Office, the pact is being shaped with a focus on “people’s welfare” in both nations.

The White House echoed this, announcing the finalization of the Terms of Reference for negotiations, and highlighting the BTA as a tool to align economic priorities through a “balanced and mutually beneficial” framework. The agreement is guided by India’s “Amrit Kaal” vision and America’s “Golden Age” goal — a symbolic synergy meant to unlock growth for workers, farmers, and entrepreneurs across both economies.

90-Day window to seal deal

The meeting came just days before Indian negotiators, led by Commerce Ministry Additional Secretary Rajesh Agrawal, are set to travel to the US to hammer out a “realistic 90-day roadmap” for an interim deal. Nineteen chapters are under discussion, including tariff structures, non-tariff barriers, rules of origin, and customs facilitation.

“The Terms of Reference have been finalized and will be used to drive negotiations toward a deal within the 90-day pause on tariffs,” a senior Indian official confirmed over the weekend.

Beyond trade, the talks emphasized continued cooperation in defense, energy, and strategic technologies. The two leaders also exchanged views on global flashpoints, reaffirming their shared belief in diplomacy and dialogue as essential paths forward, particularly with regard to the ongoing conflicts in Ukraine and the Middle East.

Building on momentum from Trump-Modi talks

The meeting also served as a follow-up to Modi’s January visit to the US and his discussions with President Trump, which both sides credit for reinvigorating bilateral cooperation.

The Prime Minister “fondly recalled” his Washington visit, noting that the shared visions of “Make America Great Again” and “Viksit Bharat 2047” had laid a strong foundation for strategic collaboration. The leaders reviewed progress since the February 13 India-US Joint Statement, issued during the Artificial Intelligence Action Summit in Paris where Modi and Vance last met.

Posting on X, Modi said, “We are committed to mutually beneficial cooperation, including in trade, technology, defense, energy and people-to-people exchanges. The India-US Comprehensive Global Strategic Partnership will define the 21st century.”

Vice President Vance responded, “It was an honor to see Prime Minister Modi this evening. He’s a great leader and incredibly kind to my family. I look forward to working under President Trump’s leadership to strengthen our cooperation with India.”

A rare vice Presidential visit

Vance’s trip marks only the fourth by a sitting US Vice President to India, following visits by Joe Biden (2013), George HW Bush (1984), and Hubert Humphrey (1966). His arrival at Palam Airbase was received with ceremonial honors by Union Minister Ashwini Vaishnaw. The Vice President was accompanied by senior officials from the Pentagon and State Department, including NSC Senior Director Ricky Gill, who is set to attend the India-US Forum in Delhi.

Vance is also undertaking a personal leg of the trip with his family, including Indian-origin Second Lady Usha Vance and their three children. After Delhi, the family traveled to Jaipur, where they are staying at the historic Rambagh Palace. Their itinerary includes visits to Amer Fort and the Taj Mahal in Agra, before returning to the US on April 18, April 24.