PM Meets US Vice-President Vance to Discuss Trade Deal and Key Issues

Prime Minister Narendra Modi welcomed US Vice President J D Vance and his family, amid indications that the two countries are exploring the possibility of signing a Bilateral Trade Agreement (BTA) soon.

The finalization of the Terms of Reference (TOR) that will direct future negotiations has brought India and the US one step closer to a comprehensive trade agreement. Following his meeting with Prime Minister Narendra Modi during his visit to India, US Vice President JD Vance issued a joint statement announcing the announcement.

The development was confirmed by US Trade Representative Ambassador Jamieson Greer. In a statement issued by the Office of the United States Trade Representative, he said, "I am happy to confirm that USTR and India's Ministry of Commerce and Industry have finalized the Terms of Reference to lay down a roadmap for the negotiations on reciprocal trade."

Greer pointed out that the trade relationship needs to be balanced. "The trade relationship with India is seriously lacking in reciprocity. By addressing unfair practices that hurt American workers and creating new markets for American goods, these ongoing discussions will contribute to achieving balance and reciprocity," he continued.

Outreach to diplomats and cultural symbolism

The announcement came after Vice President Vance, his wife Usha Vance, and their three kids made a high-profile diplomatic trip. Usha Vance is the first Hindu spouse of a US president or vice president. Her parents left southern India in the 1970s.

"Seeing Prime Minister Modi this evening was an honor," Vance wrote on X. In addition to being an excellent leader, he showed my family a great deal of kindness. Working to deepen our friendship and collaboration with the Indian people under President Trump's direction excites me!

Before traveling to Jaipur, the Vance family stopped by Delhi's Akshardham Temple. The itinerary also includes a visit to the Taj Mahal in Agra.

Greer hailed Vance and Modi's joint statement as a reaffirmation of the India-US COMPACT.

The overall picture: Tariffs, trade, and strategic planning

The larger Catalysing Opportunities for Military Partnership, Accelerated Commerce & Technology (COMPACT) program, which got underway in February 2025, includes the Bilateral Trade Agreement. By implementing coordinated policies on trade, supply chains, and technology transfer, it aims to improve economic engagement and defense ties.

After President Trump and Prime Minister Modi met earlier this year, the TOR was finalized. The US claims that the agreement specifies important areas of collaboration, such as supply-chain integration frameworks, regulatory standards, and market access.

Although a final agreement has not yet been set, both governments have expressed urgency. The BTA "offers an opportunity to negotiate a new and modern trade agreement focused on promoting job creation and citizen well-being in both countries," according to a joint statement.

The agreement may "create new opportunities of growth for workers, farmers, and entrepreneurs in both countries," it continued, adding that it is "guided by their respective visions of 'Amrit Kaal for India' and 'Golden Age for America.'"