US Vice President JD Vance meets PM Modi, trade talks and investment in focus
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In a key diplomatic engagement aimed at deepening bilateral ties, US Vice President JD Vance met Prime Minister Narendra Modi in New Delhi today during his ongoing four-day visit to India.
The high-level meeting was followed by detailed delegation-level discussions, with trade and investment emerging as the primary focus.
This visit comes amid escalating tensions in the global economy, particularly due to the ongoing US-China trade conflict. With India and the US at an advanced stage in discussions over a comprehensive trade agreement, both sides are looking to finalise a mutually beneficial deal in the coming weeks.
The Trump administration, which had earlier raised tariffs on Indian goods to 26% - an addition to the existing 10% - has now placed these "reciprocal" tariffs on a temporary 90-day hold. Economists view this as a critical window for both nations to iron out a "win-win" agreement that could soften the impact of the trade war with China.
While both nations have committed to accelerating the trade negotiations, Indian officials have emphasised that the final agreement must reflect India’s national interests. “India will not be rushed or coerced into a deal,” a senior New Delhi official stated, underscoring the importance of fair and sector-specific considerations.
According to Bloomberg, trade-focused meetings are scheduled to continue this week, and there is growing optimism that a deal could be reached by the end of May. Finance Minister Nirmala Sitharaman is also expected to engage in advanced discussions with top US officials during her upcoming trip to Washington for the IMF meeting.
Beyond trade, the meeting between Vance and Modi also touched on growing US investment in India across strategic sectors like technology, manufacturing, automobiles, and clean energy.
Elon Musk’s recent conversation with PM Modi, and his plans to visit India later this year, have sparked speculation about the possible entry of Tesla, SpaceX, and Starlink into the Indian market. Musk’s firms have so far remained absent from India, but the shift in global supply chains and India’s rising manufacturing capabilities may change that.
In a major breakthrough last month, the US gave green light to Holtec International, a US-based company led by Indian-American Krishna P. Singh, to collaborate on nuclear power plant development in India. Holtec’s Indian operations, based in Pune and Gujarat, are expected to play a vital role in this new phase of civil nuclear cooperation.
Meanwhile, US tech firms are increasingly eyeing India as a reliable hub for electronics manufacturing - seeking to diversify away from China. India already ranks among the world’s top producers of mobile phones, and further investments could boost the production of laptops, tablets, and other electronics.
