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US vice-president JD Vance has hailed what he referred to as “very good progress” on a commerce settlement between Washington and New Delhi, in feedback in the course of the highest degree go to to India but by an official of Donald Trump’s second administration.
In a speech within the north-western metropolis of Jaipur, Vance praised Indian Prime Minister Narendra Modi as “a serious leader who has thought deeply about India’s future prosperity and security”, whereas additionally describing him as a “very tough negotiator” who “drives a hard bargain”.
Vance’s description of the US-India partnership as some of the vital diplomatic relationships on the planet — and his usually heat phrases for New Delhi — distinction with the hostility the Trump administration has proven in the direction of many conventional associates and allies.
Trump has mentioned India’s protectionist insurance policies make it the “tariff king”, however he has additionally referred to as Modi a “great friend”, and the 2 leaders are ideologically aligned.
Officers of the US authorities, business executives and lobbyists have mentioned the Trump administration intends to press India to provide on-line retailers reminiscent of Amazon and Walmart full entry to its $125bn ecommerce market as a part of the deliberate commerce deal.
Vance confirmed that India and the US had agreed on phrases for the negotiation on the bilateral deal, the primary tranche of which the 2 international locations say they may agree by autumn.
With out an settlement, India faces the specter of a 26 per cent “reciprocal” tariff on its exports to the US. Trump has paused the measure for 90 days so negotiations can happen.
“America and India have officially finalised the terms of reference for the trade negotiation,” Vance mentioned, including that this was “a vital step” as a result of it set out “a road map towards a final deal between our nations”.
Modi’s authorities is shifting rapidly to barter the deal, which can cowl merchandise starting from meals to ecommerce and automobiles.
After assembly the US vice-president and his household in New Delhi on Monday, Modi mentioned in a publish on X that that they had “reviewed the fast-paced progress” made since he met Trump in Washington in February.
The US is India’s largest buying and selling associate, and the 2 international locations have mentioned they need to enhance bilateral commerce of products and companies to $500bn, greater than double the present quantity, by 2030.
US officers are urgent the Modi authorities to decrease commerce boundaries and non-tariff boundaries in a rustic with a few of the world’s highest common import duties.
Earlier than and after Modi’s US go to, India introduced a spherical of largely symbolic tariff cuts on bourbon, luxurious automobiles and huge bikes, the final to handle a long-running Trump criticism about duties on Harley-Davidson bikes.
To cut back India’s commerce surplus, Modi has additionally promised to purchase extra US oil and fuel, although it has nearer and cheaper suppliers within the Center East and Russia. Vance steered the world’s fifth-largest economic system must also drop some non-tariff boundaries.
The vice-president welcomed a Modi authorities announcement from earlier this 12 months lifting restrictions on the import of US small modular reactors and the development of US-designed reactors in India. “American energy can help realise India’s nuclear power production goals,” Vance mentioned. “There is no future without energy security and energy dominance.”
New Delhi and Washington have been drawing nearer on defence and know-how due to their shared mistrust of China, with which India shares a protracted, disputed border. The vice-president mentioned India ought to “buy more of our military equipment, which of course we believe is the best in class”.
“I really believe that the future of the 21st century is going to be determined by the strength of the United States-India partnership,” Vance mentioned. “I also believe that if we fail to work together successfully, the 21st century could be a very dark time for all of humanity.”
