India, US Finalise Trade Framework as VP Vance Paves Way for Pact

Formal Roadmap Agreed Upon; Bilateral Talks Emphasise Military, Infrastructure, and Technology Cooperation

United States Vice President JD Vance on Tuesday announced that India and the US have officially finalised the terms of reference for ongoing trade negotiations, setting in motion the groundwork for a comprehensive bilateral trade agreement. Speaking in Jaipur, Vance noted that the finalisation represents a significant step in realising the shared economic vision of President Donald Trump and Prime Minister Narendra Modi.

“America and India have officially finalised the terms of reference for the trade negotiation. I believe this is a vital step toward realising President Trump’s and Prime Minister Modi’s vision, because it sets a road map toward a final deal between our nations,” Vance said during a keynote address.

The US Vice President is currently on a four-day official visit to India, which began Monday. He has since held bilateral discussions with Prime Minister Modi and visited cultural landmarks including the Akshardham Temple in New Delhi.

Highlights:

• US and India finalise terms of reference for trade negotiations.

• Vance says agreement sets a roadmap to a final trade pact.

• Announcement made during his address in Jaipur.

• Part of JD Vance’s four-day diplomatic visit to India.

Reaffirming Strategic Alignment: Defence, Innovation, and Infrastructure in Focus

Vance emphasized the deepening strategic alignment between the two countries, citing that the United States conducts more military exercises with India than with any other nation globally. In addition to defence, he highlighted collaborative opportunities in infrastructure development and advanced technology innovation.

“I believe there is much that America and India can accomplish together,” said Vance. “We do more military exercises with India than we do with any other nation on Earth. Second, to build great things, and finally, to innovate the cutting-edge technologies both our countries will need in the years to come.”

The Vice President’s remarks signal a continued focus on enhancing industrial synergy, cross-border investment, and research-driven technology transfers, particularly in sectors such as artificial intelligence, defence manufacturing, and semiconductors.

Highlights:

• US–India collaboration in military, infrastructure, and innovation spotlighted.

• Emphasis on joint technological advancement and industrial building.

• Reaffirms US commitment to India as a critical strategic partner.

Trade Philosophy and Tariff Strategy: Vance Defends Trump’s Reciprocal Tariffs

Addressing concerns about former President Trump’s trade policies, Vance defended the administration’s reciprocal tariff measures, stating that they are not about reviving outdated economic models but about rebalancing global trade structures.

“Critics have attacked my president, President Trump, for starting a trade war in an effort to bring back the jobs of the past, but nothing could be further from the truth,” said Vance. “He seeks to rebalance global trade so that America, with friends like India, can build a future worth having for all of our people together.”

Vance added that the Trump administration’s trade doctrine is anchored in fairness, mutual respect, and shared national interests, positioning India as a key economic and geopolitical ally in its global strategy.

Highlights:

• Vance defends Trump’s reciprocal tariff policies.

• Claims tariff actions aim to rebalance global trade, not resurrect old models.

• Asserts India is central to US trade policy built on fairness and shared interests.

Bilateral Talks and the Path Ahead

The announcement of the finalised trade negotiation framework comes amid broader diplomatic efforts to bolster US–India relations under the renewed Trump administration. Vance’s ongoing visit is expected to cover sectoral roundtables with industry leaders, and strategic meetings with Indian policymakers to fast-track convergence in trade, supply chains, and energy security.

The bilateral momentum builds on earlier frameworks including the US–India Strategic Trade Dialogue and the iCET (Initiative on Critical and Emerging Technology) partnership, now being operationalised through sectoral cooperation.

Highlights:

• Negotiation terms expected to lead to broad-based trade pact.

• Vance to hold further meetings with Indian industry and policy stakeholders.

• Aligns with previous US–India initiatives like iCET and Strategic Trade Dialogue.