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US vice-president JD Vance has hailed what he referred to as “excellent progress” on a commerce settlement between Washington and New Delhi, in feedback in the course of the highest degree go to to India but by an official of Donald Trump’s second administration.
In a speech within the north-western metropolis of Jaipur, Vance praised Indian Prime Minister Narendra Modi as “a critical chief who has thought deeply about India’s future prosperity and safety”, whereas additionally describing him as a “very powerful negotiator” who “drives a tough cut price”.
Vance’s description of the US-India partnership as some of the necessary diplomatic relationships on the earth — and his typically heat phrases for New Delhi — distinction with the hostility the Trump administration has proven in the direction of many conventional pals and allies.
Trump has stated India’s protectionist insurance policies make it the “tariff king”, however he has additionally referred to as Modi a “nice buddy”, and the 2 leaders are ideologically aligned.
Officers of the US authorities, trade executives and lobbyists have stated the Trump administration intends to press India to provide on-line retailers akin to Amazon and Walmart full access to its $125bn ecommerce market as a part of the deliberate commerce deal.
Vance confirmed that India and the US had agreed on phrases for the negotiation on the bilateral deal, the primary tranche of which the 2 international locations say they may agree by autumn.
With out an settlement, India faces the specter of a 26 per cent “reciprocal” tariff on its exports to the US. Trump has paused the measure for 90 days so negotiations can happen.
“America and India have formally finalised the phrases of reference for the commerce negotiation,” Vance stated, including that this was “an important step” as a result of it set out “a highway map in the direction of a remaining deal between our nations”.
Modi’s authorities is moving quickly to negotiate the deal, which is able to cowl merchandise starting from meals to ecommerce and vehicles.
After assembly the US vice-president and his household in New Delhi on Monday, Modi stated in a submit on X that they’d “reviewed the fast-paced progress” made since he met Trump in Washington in February.
The US is India’s largest buying and selling companion, and the 2 international locations have stated they wish to enhance bilateral commerce of products and providers to $500bn, greater than double the present quantity, by 2030.
US officers are urgent the Modi authorities to decrease commerce boundaries and non-tariff boundaries in a rustic with a few of the world’s highest common import duties.
Earlier than and after Modi’s US go to, India introduced a spherical of largely symbolic tariff cuts on bourbon, luxurious vehicles and enormous bikes, the final to deal with a long-running Trump grievance about duties on Harley-Davidson bikes.
To cut back India’s commerce surplus, Modi has additionally promised to purchase extra US oil and fuel, although it has nearer and cheaper suppliers within the Center East and Russia. Vance recommended the world’s fifth-largest financial system must also drop some non-tariff boundaries.
The vice-president welcomed a Modi authorities announcement from earlier this 12 months lifting restrictions on the import of US small modular reactors and the development of US-designed reactors in India. “American power can assist realise India’s nuclear energy manufacturing targets,” Vance stated. “There is no such thing as a future with out power safety and power dominance.”
New Delhi and Washington have been drawing nearer on defence and expertise due to their shared mistrust of China, with which India shares an extended, disputed border. The vice-president stated India ought to “purchase extra of our navy tools, which in fact we consider is one of the best at school”.
“I actually consider that the way forward for the twenty first century goes to be decided by the power of the United States-India partnership,” Vance stated. “I additionally consider that if we fail to work collectively efficiently, the twenty first century might be a really darkish time for all of humanity.”
