Economy

J.D. Vance urges India to remove non-tariff barriers that hinder U.S. businesses.

Published On Wed, 23 Apr 2025
Rajat Thakur
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On Tuesday, U.S. Vice President J.D. Vance advocated for stronger cooperation between the United States and India, particularly in the areas of energy and defense, while urging New Delhi to ease non-tariff trade barriers and expand market access for American businesses. Speaking at the Rajasthan International Centre in Jaipur during his four-day visit, Vance emphasized the importance of advancing trade negotiations and hailed the progress made so far, calling the broad framework of a bilateral agreement “critical.” He also described Prime Minister Narendra Modi as a “tough negotiator,” acknowledging Modi’s commitment to protecting India’s industries.

“One recommendation I have is to consider reducing some of the non-tariff trade restrictions for U.S. businesses seeking entry into the Indian market,” Vance said. “We’ve discussed this with Prime Minister Modi. President Trump knows Modi drives a hard bargain — and that’s one of the reasons we admire him. We don’t fault him for prioritizing India’s interests, but we do criticize past American leadership for not standing up as firmly for our workers. We believe we can now correct that — for the benefit of both our nations.”

Vance is joined on this visit by his wife, Second Lady Usha Vance, and their children. The trip, which began on April 21, is mostly personal, but the family met with PM Modi and senior officials on Monday. His remarks come just ahead of trade talks beginning Wednesday in Washington. An Indian delegation led by commerce secretary-designate Rajesh Agrawal will engage with their U.S. counterparts, with both sides aiming to finalize the first phase of a Bilateral Trade Agreement (BTA) by September or October. An interim deal is being targeted for July 9 — the day a 90-day suspension of reciprocal tariffs is set to expire. Notably, this pause excludes China, which has led to retaliatory actions from Beijing.

India and the U.S. also aim to more than double their trade volume, targeting $500 billion by 2030. Without naming specific countries, Vance sent a clear message that the U.S. seeks fair and principled trade partnerships. “We want to work with countries that honor their workers and aren’t merely acting as middlemen for re-exporting goods from elsewhere,” he said. Vance defended former President Trump’s trade policies, often criticized for provoking a “trade war,” arguing they were meant to bring back jobs to the U.S. and correct global trade imbalances.

He also stressed the importance of U.S.-India collaboration: “A strong partnership between India and the U.S. is key to a peaceful and prosperous 21st century. Without it, we could face very troubling times.” On defense cooperation, Vance promoted the U.S. Catalysing Opportunities for Military Partnerships (COMPACT) initiative, announced by Trump and Modi in February. He highlighted the potential for India to enhance its defense capabilities by acquiring American military hardware like the F-35 fighter jet.

Vance also noted that expanding U.S. energy exports to India would help reduce India’s production costs and spur growth across sectors. A senior Indian commerce ministry official, speaking anonymously, reinforced the mutual benefits of the India-U.S. partnership, calling it a strategic and economic relationship with vast untapped potential. The official said the BTA aims to deepen and diversify these ties to ensure greater prosperity for both countries.

Disclaimer: This image is taken from PTI.