On April 21, 2025, US Vice President JD Vance and Prime Minister Narendra Modi met in New Delhi and praised the “significant progress” made in the ongoing talks for a mutually advantageous 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 discussion, both leaders positively reviewed developments in bilateral collaboration across several sectors, including energy, military, and strategic technology. They also exchanged views on many regional and global challenges, highlighting dialogue and diplomacy as the best strategy to addressing disagreements.
The BTA talks are a part of a larger program known as “Mission 500,” which aims to more than increase bilateral commerce to $500 billion by 2030. Long-standing trade barriers should be addressed, market access expanded, and tariff and non-tariff barriers decreased as a result of the agreement. As part of the BTA process, the US, which has a $45.7 billion goods trade deficit with India in 2024, has praised India’s recent tariff reductions and its readiness to further expand its market to US exports.
A framework for multi-sector talks aimed at guaranteeing long-term, mutually beneficial solutions is established by the BTA’s Terms of Reference, which were announced during this visit. The pact, which was introduced during Prime Minister Modi’s previous visit to Washington, DC, in February 2025, is intended to spur potential for military cooperation, expedited trade, and technological cooperation within the U.S.-India COMPACT framework.
In the midst of ongoing tensions over global trade, Vice President Vance’s maiden trip to India, which also includes trips in Jaipur and Agra, is interpreted as a symbol of the Biden-Trump administration’s determination to strengthening strategic and commercial ties with India. To help with continuing negotiations, the US has lowered new tariff rates on the majority of its trading partners, including India, to 10% for 90 days.
Both leaders reaffirmed their dedication to boosting investment and trade, strengthening their countries and economy, and maintaining robust supply networks. In addition to wishing Vice President Vance and his family a nice stay in India, Prime Minister Modi also greeted President Trump and expressed his excitement for the latter’s trip to India later this year.
With both parties aiming for a historic deal by the end of 2025 that is anticipated to transform the bilateral economic landscape and strengthen their strategic partnership, the Modi-Vance summit highlights the rising pace in India-US trade negotiations.
