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US-Vice President Vance Engages with Modi in Delhi Amid Trade Disputes

The visit underscores the urgency for a bilateral trade deal between the nations as tariff disputes escalate.

Source: bbc.co.uk1 min read
US-Vice President Vance Engages with Modi in Delhi Amid Trade Disputes
Image via bbc.co.uk

In brief

US VP JD Vance's four-day trip to India includes meetings with PM Modi, cultural explorations, and discussions on international trade policies.

US Vice-President JD Vance has kicked off a four-day tour of India, arriving in the capital city, Delhi. His visit, which comes amidst rising global trade tensions exacerbated by recent US tariff policies, aims to facilitate discussions with Prime Minister Narendra Modi regarding a long-awaited bilateral trade agreement. In between formal talks with Modi, Vance is expected to partake in sightseeing excursions in historical sites like Agra and Jaipur, accompanied by his family. This visit occurs against a backdrop of nations vying to finalize trade agreements before the expiration of a 90-day tariff pause instituted by President Trump, which concludes on July 9.India's foreign ministry suggested that the discussions will cover regional and global matters of mutual interest. Vance's family ties to India, with roots in Andhra Pradesh, add a personal dimension to his visit. Upon arriving in Delhi, Vance visited the renowned Akshardham temple complex, symbolizing an openness and curiosity toward Indian culture.In the wake of Trump’s announcement of high reciprocal tariffs targeting multiple countries, including a significant 27% tariff on India, tensions have heightened. India has been proactive in reducing tariffs on American goods, with the trade balance heavily favoring India, confronting the US with a $45 billion trade surplus. The average tariff in India stands around 12%, starkly contrasting with the US’s lower 2%.The US and India were previously at the pinnacle of trade relations, with bilateral commerce hitting $190 billion. Following an early meeting between Modi and Trump after his inauguration, both leaders aspired to more than double this trade figure to $500 billion, with commitments to import more US products including oil and gas.On top of Vance's diplomatic mission, the impending visit of Trump to India for the Quad summit, expected to include leaders from Australia and Japan, looms large. Indian foreign ministry spokesperson Randhir Jaiswal expressed optimism that Vance's visit would significantly enhance the bilateral relationship between the two nations.

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