On April 21, 2025, US Vice President JD Vance met with Indian Prime Minister Narendra Modi in New Delhi to talk about the continuing Bilateral Trade Agreement (BTA) discussions between the US and India. Both leaders applauded strong 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 centered on their shared economic interests.
By strengthening bilateral trade and supply-chain integration in a fair and advantageous way, the BTA seeks to create a contemporary trade agreement that will encourage job creation and enhance the well-being of citizens in both nations. The agreement is anticipated to provide new growth prospects for farmers, workers, and entrepreneurs, inspired by America’s “Golden Age” and India’s “Amrit Kaal” vision.
Following a fruitful meeting in Washington earlier this year, Prime Minister Modi and US President Donald Trump announced the launch of the India-US COMPACT initiative, which focuses on 21st-century technology cooperation, accelerated commerce, and military partnership. They also reaffirmed the strength of the India-US Comprehensive Global Strategic Partnership.
Enhancing collaboration in energy, defense, strategic technologies, and other areas was another topic of conversation during Vance’s visit, which also included his family and other Trump administration officials. Both leaders discussed regional and international concerns, highlighting communication and diplomacy as the best course of action.
With a $45.7 billion goods trade imbalance with India in 2024, the US Trade Representative emphasized the importance of addressing the significant lack of reciprocity in the trade relationship. Increased market access, lower tariff and non-tariff obstacles, and long-term benefit pledges are the goals of the BTA discussions.
Global trade tensions and recent US decisions to slap retaliatory tariffs on a number of nations, including India, are the backdrop for the visit and the ToR deal. In order to facilitate negotiations and possibly avert harsher tariffs that would otherwise take effect, the US temporarily lowered new tariff rates to 10% for 90 days. The goal is to complete the first tranche of the BTA by fall 2025.
Prime Minister Modi emphasized the commitment to enhancing the bilateral relationship under the frameworks of “Make America Great Again” and “Viksit Bharat 2047” while extending cordial greetings to President Trump and expressing excitement for his visit to India later this year.
By completing the Terms of Reference for their bilateral trade agreement negotiations, the US and India have advanced significantly and laid the groundwork for a comprehensive trade agreement that will increase economic cooperation, address trade imbalances, and develop strategic partnerships across a number of industries.
