US VP Vance: India and America have finalised terms of reference for a trade deal

India and the United States must work together effectively to ensure a “prosperous and peaceful” 21st century, U.S. Vice President JD Vance said during a speech calling for deeper ties between the two nations across multiple sectors.

Speaking in the city of Jaipur during his four-day visit to India, Vance stressed the importance of cooperation. “But I also believe that if we fail to work together successfully, the 21st century could be a very dark time for all of humanity,” he said.

His comments came a day after meeting with Indian Prime Minister Narendra Modi, where both sides reported progress toward a bilateral trade agreement—something Delhi hopes will shield it from higher U.S. tariffs.

India is among several countries seeking trade deals with the U.S. during President Donald Trump’s 90-day pause on increased tariffs, which expires on July 9. Before the pause, India faced the prospect of a 27% tariff on its exports to the U.S. Since then, talks have intensified toward reaching a trade agreement.

During his remarks in Jaipur, Vance said both countries had finalized the terms of reference for the negotiations. “This is a vital step toward realizing President Trump and Prime Minister Modi’s vision because it sets a roadmap toward a final deal between our nations,” he said.

Vance also praised Modi as a “tough negotiator” who “drives a hard bargain,” which drew applause from the audience.

Modi and Trump enjoy a strong personal rapport—the Indian leader was among the first to visit Trump after the start of his second term. Nonetheless, Trump has frequently criticized India’s high tariffs, labeling the country a “tariff king” and “a big abuser” of trade relations.

Following Vance’s meeting with Modi, U.S. Trade Representative Jamieson Greer reiterated concerns over the “serious lack of reciprocity in the trade relationship with India” in an official statement.

India has already lowered tariffs on a number of goods and is reportedly considering broader cuts to address Trump’s concerns. However, agriculture remains a major sticking point—Washington wants greater access to India’s market, but Delhi has resisted due to domestic sensitivities.

In addition to trade, Vance noted in his Jaipur address that the U.S. is aiming to expand energy and defense sales to India. On Monday, Modi and Vance also discussed strategic technologies and defense cooperation.

Modi said after the meeting that he looks forward to welcoming President Trump to India later this year. Trump is expected to attend the upcoming Quad summit being hosted in Delhi.

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