NEW DELHI — U.S. Vice President JD Vance on Tuesday called for enhanced engagement with India and said the South Asian country should buy more defense equipment and energy from the U.S. and allow Washington greater access to its market, lending momentum to an expected bilateral trade deal.
Vance, on a four-day visit to India, said he and Prime Minister Narendra Modi made progress on trade talks during their discussions on Monday, and confirmed that both sides had finalized the terms of reference for the trade negotiation — a vital step towards setting the road map for the final agreement.
India and the U.S. hope to seal a bilateral trade agreement this year and have set an ambitious target of more than doubling their bilateral trade to $500 billion by 2030. If achieved, the trade deal could significantly enhance economic ties between both countries and potentially strengthen diplomatic ties as well.
''I believe there is much that India and America can accomplish together,'' Vance said at an event in the western city of Jaipur, where he, his wife Usha Vance and their three children were on a sightseeing tour.
Vance's first visit to New Delhi came amid the backdrop of U.S. President Donald Trump's partially-paused tariff program against most countries, including India. Earlier this month, Trump announced a 90-day pause in which imports from most countries would face a baseline 10% tax so that there was time to hold talks and possibly structure broader deals.
The trade negotiations are especially urgent for India and could help New Delhi avoid sharp U.S. tariffs. Meanwhile, the Trump administration has portrayed its strategy of tariffs as forcing negotiations that could limit the reach and influence of China, the world's dominant manufacturer and New Delhi's main rival in the region.
At the event, Vance sought to assuage fears over Trump's tariff decisions and said his administration was seeking to rebalance global trade so that the U.S., with friends like India, can build a better future. He said that trade relations must be based on fairness.
''I come here with a simple message," Vance said. The Trump administration ''seeks trade partners on the basis of fairness and shared national interest. We want to build relationships with our foreign partners who respect their workers.''