IRIA News

7 minute read

U.S. Vice President JD Vance’s visit to India signals a renewed push to strengthen strategic and economic ties between the two countries. The trip marks a pivotal moment in efforts to finalize a comprehensive trade deal and expand cooperation in defense, energy, and regional security, as New Delhi seeks to avoid U.S. tariffs.

Vance’s largely personal four-day visit comes at a critical time as India and the United States seek to more than double their bilateral trade volume to $500 billion by 2030. During his discussions with Indian Prime Minister Narendra Modi in New Delhi and later in Jaipur, Vance praised the progress made in trade negotiations and confirmed that both countries had finalized the terms of reference for further talks.

“It sets a roadmap toward a final deal between our nations,” Vance said, indicating that the talks had gained significant momentum. India is seeking to conclude the first phase of the trade agreement by autumn this year, with both nations looking to reduce trade barriers, enhance market access, and integrate supply chains more closely.

India is pushing to position itself as a manufacturing hub of choice amid global shifts in trade dynamics. The Trump administration’s use of tariffs as leverage has opened space for countries like India to assert themselves in global trade realignments, especially as businesses seek alternatives to China for manufacturing and sourcing.

Vance called for a new era of collaboration between Washington and New Delhi, positioning India as a pivotal partner for the Trump administration. Vance’s visit signifies that the United States intends to continue working toward reaching the bilateral trade agreement outlined by Trump and Modi when the Indian leader visited Washington in February.

Defense and energy engagement

A major focus of Vance’s meetings was on expanding defense cooperation. He emphasized that it would be natural for India to procure more military equipment from the United States, highlighting India’s growing defense needs and the strategic alignment between the two countries. Among the key offerings are Lockheed Martin’s F-35 fighter jets, with the U.S. viewing India as a critical defense partner in the Indo-Pacific.

“We, of course, want to collaborate more,” Vance said. “We want to work together more, and we want your nation to buy more of our military equipment.”

He also discussed expanding cooperation in the energy sector, saying the United States is interested in exporting more energy to India and assisting in exploring India’s domestic resources, including offshore natural gas and critical minerals. Nuclear energy was also identified as a key sector for collaboration, pointing to long-term energy security goals shared by both nations.

Personal diplomacy and symbolism

Vance’s visit was notably personal as well as political. During the trip, Vance was accompanied by his wife, Usha Vance—a practicing Hindu and the daughter of immigrants from South India—and their three children, dressed in Indian attire.

The Vice President engaged in various cultural activities. The family visited the Akshardham temple in New Delhi, the Taj Mahal, and the Amer Fort in Rajasthan, emphasizing the human and cultural ties that undergird the political relationship.

Prime Minister Modi hosted Vance and his family for dinner at his residence, a gesture underscoring the close rapport between the two leaders. Vance, speaking to an audience in Jaipur, praised Modi extensively.

“I think he’s a special person,” Vance said. “In the past, Washington approached Prime Minister Modi with an attitude of prejudice or even one of condescension. And, as I told Prime Minister Modi last night, he’s got approval ratings that would make me jealous.” He added, “Prime Minister Modi is a tough negotiator. He drives a hard bargain,” drawing laughter and applause from the crowd.

Vance warns of ‘very dark time’ without close US-India ties

The backdrop of the visit is the Trump administration’s broader geopolitical strategy, which includes imposing tariffs to rebalance trade and counter the influence of China. India is viewed as a vital ally in these efforts, not just economically but strategically. The two countries are members of the Quad alliance, along with Japan and Australia, which seeks to maintain a rules-based order in the Indo-Pacific.

“If India and the United States work together successfully, we’re going to see a 21st century that is prosperous and peaceful,” Vance stated. “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.”

India’s role in the Indo-Pacific strategy is seen as essential. With its growing economic and military capabilities, New Delhi is increasingly regarded in Washington as a counterweight to Beijing’s regional ambitions.

Pressure to finalize the trade deal

The trade talks are particularly pressing for India, given the potential impact of Trump’s paused but still looming tariffs. India is especially vulnerable in sectors such as agriculture, auto components, medical devices, jewelry, and machinery. The trade deal under negotiation could provide much-needed protection and access to U.S. markets in these critical areas.

U.S. officials are optimistic about concluding a meaningful agreement in 2025. The agreement is expected to cover goods, services, and investments, making it one of the most comprehensive trade partnerships the U.S. would have in the region.

The US and India are hard at work on a trade agreement built on shared priorities, and I’m excited to announce that we have officially finalized the Terms of Reference for our trade negotiations.

This agreement is a vital step toward a final deal between our nations. pic.twitter.com/nptw7P7X6J

— Vice President JD Vance (@VP) April 22, 2025

Business prospects on the horizon

Vice President Vance’s visit also coincides with renewed business interest in India from major American companies. SpaceX and Tesla CEO Elon Musk has expressed intent to enter the Indian market, and Starlink, Musk’s satellite internet venture, has already signed agreements with major Indian telecom providers.

Modi’s government is keen to attract these investments, particularly as it ramps up its ‘Make in India’ and Digital India initiatives. The potential entry of Tesla into India could further align with both countries’ shared goals of sustainable development and technological innovation.

Defense pact and future cooperation

The two countries are also in talks to sign a 10-year defense cooperation framework later this year. This agreement would institutionalize military ties and set long-term goals for joint exercises, technology sharing, and procurement.

The White House noted that the visit laid a strong foundation for ongoing discussions, with both sides expressing commitment to advancing a strategic partnership. Indian officials echoed this sentiment, describing the relationship as a “comprehensive global strategic partnership” that is only expected to grow. The two sides “welcomed the significant progress” in the negotiations toward a “mutually beneficial” trade deal, according to a statement from Modi’s office.

Vice President JD Vance’s four-day visit to India has reinforced the strategic convergence between Washington and New Delhi. As both countries seek to navigate an increasingly complex global order, their shared interests in trade, defense, energy, and regional stability have positioned them as indispensable partners.

Vance’s clear message was of opportunity and urgency: deepen the relationship now, or risk falling behind in an era defined by shifting power dynamics and growing geopolitical uncertainty. As negotiations advance and leadership on both sides remains engaged, the U.S.-India partnership appears set for a significant leap forward.

Pleased to welcome US @VP @JDVance and his family in New Delhi. We reviewed the fast-paced progress following my visit to the US and meeting with President Trump. We are committed to mutually beneficial cooperation, including in trade, technology, defence, energy and… pic.twitter.com/LRNmodIZLB

— Narendra Modi (@narendramodi) April 21, 2025