‘Commit To Results-Driven Agenda’: India, US Gear Up For Big Trade Deal After Finalising Terms

Last Updated:April 22, 2025, 07:28 IST

PM Modi and US Vice President JD Vance met in the national capital on Monday evening and held talks about various issues, including bilateral trade agreement.

US VP JD Vance meets PM Modi (Reuters Image)

Prime Minister Narendra Modi and US Vice President JD Vance on Monday announced the Terms of Reference (TOR) for a bilateral trade agreement, which aims to “commit to a results-driven agenda" for a mutually beneficial partnership.

After the announcement, the US and India are making strides towards a BTA, United States Trade Representative Jamieson Greer said.

What Did US Trade Representative’s Office Say?

“I am pleased to confirm that USTR and India’s Ministry of Commerce and Industry have finalised the Terms of Reference to lay down a roadmap for the negotiations on reciprocal trade," a statement from his office said.

Underlining a “serious lack of reciprocity in trade relationship with India", Greer said that the ongoing BTA talks will help achieve balance and reciprocity by opening new markets for American goods and “addressing unfair practices that harm American workers".

The statement laid down the goals of the TOR, stating, “The goals of this initiative are to drive transformative change across key pillars of cooperation and commit to a results-driven agenda with initial outcomes this year to demonstrate the level of trust for a mutually beneficial partnership."

“The Terms of Reference announced today by Vice President Vance establish a roadmap for mutually beneficial, multi-sector Bilateral Trade Agreement negotiations," it added.

JD Vance, who is on a 4-day visit to India, met PM Modi on Monday evening and termed him a “great leader".

“It was an honor to see Prime Minister Modi this evening. He’s a great leader, and he was incredibly kind to my family. I look forward to working under President Trump’s leadership to strengthen our friendship and cooperation with the people of India," Vance posted on X.

India-US Bilateral Trade Agreement

During PM Modi’s visit to the United States in February this year, he and President Donald Trump agreed to formulate a mutually beneficial Bilateral Trade Agreement by fall 2025. The BTA is one part of a larger US-India plan to boost military ties, trade, and technology cooperation.

On April 2, Trump announced sweeping reciprocal tariffs on various nations, including 26% tariffs on India, shaking the global markets. He put the tariffs on a 90-day hold on all countries, except for China, which now faces 145% US tariffs.

After the pause, Trump said that there will be a 10% tariff on most foreign imports.

However, some sectors, such as pharmaceuticals, semiconductors, energy products (like oil, gas, coal, and LNG), are exempt from these tariffs.

News world ‘Commit To Results-Driven Agenda’: India, US Gear Up For Big Trade Deal After Finalising Terms