US vice president JD Vance praises PM Modi as 'tough negotiator' in push for bilateral trade deal

US Vice President JD Vance has credited Prime Minister Narendra Modi as a "tough negotiator," saying that his uncompromising approach to India's interests commands respect in Washington. This is while there are stepped-up efforts to finalize a bilateral trade deal between the two nations. Vance made the remarks during a visit to India, where he met PM Modi and held talks on trade, defense, and energy cooperation.

Breakthrough in trade talks

The encounter between Modi and Vance brought important momentum toward a bilateral trade agreement. The two have concurred on the terms of reference for the negotiations on a new and contemporary trade agreement. This is important to India because it aims to protect its exports from potential US tariff hikes. The US has suggested significantly increased tariffs, with duties of as much as 26% on Indian exports, which are temporarily suspended for 90 days.

US-India economic partnership

The trade agreement between the two nations has the objective to redefine the economic partnership between India and the US. As India's biggest trading partner, the trade agreement is likely to contribute significantly to the two countries. In 2024, Indian trade with the US totaled $129 billion with a $45.7 billion surplus for India. The pact is likely to encourage job generation, citizen prosperity, and green development partnerships ³.

Key Areas of Cooperation

The US and India are seeking to increase cooperation in several areas, including:

- Defense: Increasing defense partnership and strategic cooperation
- Energy: Increasing cooperation in energy and strategic technologies
- Trade: Negotiating a new and contemporary trade agreement
- Regional and Global Issues: Promoting dialogue and diplomacy
A Boost to Bilateral Ties

The visit of Vance is viewed as a welcome development in strengthening India-US relations. Indian Foreign Ministry spokesman Randhir Jaiswal said that the visit would provide an impetus to bilateral relations. The two leaders also exchanged views on regional and international issues, with an emphasis on dialogue and diplomacy ¹ ³.

Conclusion

The development in the US-India trade negotiations is a major move towards a more robust economic relationship. With both nations being willing to come to the negotiating table and compromise, the chances of a fruitful trade agreement are bright. With the deadline for the 90-day tariff hiatus fast approaching, the coming weeks will be instrumental in shaping the fate of the trade negotiations.