US Vice-President JD Vance and Prime Minister Narendra Modi touted progress in talks for a trade deal between the two countries as New Delhi rushes to avoid US tariffs and court Trump's administration.
Vance arrived in India earlier on Monday for a four-day visit to the country with his family.
Modi and Vance reviewed progress in various areas of bilateral cooperation outlined in February when the Indian leader met President Donald Trump in Washington. It includes "fairness" in their two-way trade and growing their defence partnership.
The two leaders also noted continued efforts towards enhancing cooperation in energy, defence and strategic technologies, among others, a statement from the Prime Minister's Office said after talks between them.
Statements from the Trump administration said the two countries agreed on a roadmap for further discussions on trade. Vance's office said talks present "an opportunity to negotiate a new and modern trade agreement focused on promoting job creation and citizen well-being in both countries."
In a statement on Monday, US Trade Representative Jamieson Greer pointed to a "serious lack of reciprocity in the trade relationship with India" that needed to be resolved.
There have been reports that Modi's government is open to cutting tariffs on more than half of its imports from the US, which were worth a total $41.8 billion in 2024, as part of a trade deal. The U.S. is India's largest trading partner and their bilateral trade reached $129 billion in 2024, with a $45.7 billion surplus in favour of India, U.S. government trade data show.
Officials in New Delhi are expecting to clinch a trade deal with the US within the 90-day pause on tariff hikes announced by Trump on April 9 for major trading partners. A wide swathe of Delhi's goods exports face a levy of over a quarter of their value under the new measures. A 10% blanket duty on many US imports remains in effect.
India hopes to "positively conclude" the first part of the trade pact by this autumn, Indian Finance Minister Nirmala Sitharaman said in San Francisco on Monday as she started on a trip packed with engagements between the two nations.
"The long and short of engaging with the US is not just for this reciprocal tariff-related matter, but in the interest of ... our largest trading partner with whom we need to have an agreement," Sitharaman said in an address to the Indian diaspora.
Vance's tour in India is also seen as laying the ground for Trump's visit to the country later in the year for the summit of leaders of the Quad grouping that includes India, Australia, Japan and the United States.
A foreign policy expert in Delhi said the timing of Vance's visit was critical against the backdrop of trade talks. "The fact that the US-China tensions are ramping up, and Vance in particular seems to have taken a very high-profile role in American diplomacy, also means that the visit assumes an added layer of significance," he said.
