India-US finalise terms of reference for negotiations after PM Modi and JD Vance meet

Prime Minister Narendra Modi and US Vice-President JD Vance have welcomed the significant progress in the ongoing trade talks between both countries.

The two leaders met for nearly two hours at the Prime Minister’s official residence in New Delhi, following which a spokesperson for the Vice-President’s office said India and the US have formally announced the finalisation of terms of reference for bilateral trade agreement negotiations.

“This announcement elevates the significant work done since February 13, 2025, when Prime Minister Modi visited President Trump and the two agreed to launch negotiations for a Bilateral Trade Agreement between the United States and India,” a statement by the US Trade Representative’s Office said.

JD Vance’s visit to India comes at a critical time in the India-US trade negotiations. Both countries are working towards announcing an interim trade deal even before the bilateral trade agreement is signed by US President Donald Trump and PM Modi in September or October this year. One of India’s top trade negotiators, Special Secretary Rajesh Agrawal is travelling to the US this week to hold in-person talks with American officials.

While USTR ambassador Jamieson Greer announced the finalisation of the terms of reference to lay down the roadmap for negotiations on reciprocal trade, he also red-flagged a serious lack of reciprocity in the trade relationship with India.

The USTR office said that the ongoing talks will help achieve a balance and reciprocity by opening new markets for American goods and addressing unfair practices that harm American workers. “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 said.

The goals for the United States include increasing market access, reducing tariff and non-tariff barriers, and negotiating a robust set of additional commitments to ensure long-term benefits to American companies and workers.

In addition to tariffs, technical barriers to trade, regulatory barriers, and restrictions on access to the market in the services, industrial, and agricultural sectors are a priority for the US government in the ongoing trade talks.

On Monday, India’s anti-trust regulator allowed the US tech firm Google to settle a case related to anti-competitive practice for ₹20 crore. Sources said, if the CCI had proceeded with the penalty, then Google could have been fined 10% of its global revenue which could have run into billions of dollars. That’s not all. In the last two months, the Indian government has eliminated the equalisation levy, reduced duties on bourbon whiskey and on high-end cars and motorcycles. All these steps together can be seen as an olive branch to the US government to pause the reciprocal tariffs on India.

India was also the first country to start negotiating a trade deal with the second Trump administration and the talks began with PM Modi’s visit to White House in February this year.

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