India and the United States have agreed on a road map for a trade deal in a move that is expected to defuse tensions over looming tariffs and reposition New Delhi as a key partner in Washington’s strategy to counter China’s influence.
The announcement came hours after US Vice-President JD Vance met Indian Prime Minister Narendra Modi in New Delhi on Monday.
In a statement, US Trade Representative Jamieson Greer confirmed both sides had finalised the terms of reference for negotiations aimed at achieving “reciprocal trade”.
“There is a serious lack of reciprocity in the trade relationship with India. These ongoing talks will help achieve balance and reciprocity by opening new markets for American goods and addressing unfair practices that harm American workers,” he said.
“India’s constructive engagement so far has been welcomed, and I look forward to creating new opportunities for workers, farmers, and entrepreneurs in both countries,” Greer added.
India’s external affairs ministry said in a statement that Modi and Vance noted “significant progress” in bilateral trade negotiations. Vance said in a post on X that he “looked forward to strengthening our relationship with India”.
