US vice president JD Vance backs deeper trade ties with India, criticizes past ‘preachy’ approach

New Delhi: US Vice President JD Vance on Tuesday said the terms of reference for negotiations on an India-US bilateral trade agreement have been finalized, describing it as a “vital step” towards a broader agreement grounded in shared priorities.

The announcement signals that both sides are ready to move from exploratory discussions to formal negotiations on the trade deal, at a time when New Delhi and Washington are seeking to align more closely on economic and strategic fronts.

“This agreement is a vital step toward a final deal between our nations,” Vance said.

“We come to you as partners, looking to strengthen our relationship. We're not here to preach that you do things a certain way,” Vance told an audience in Jaipur on Tuesday, his first speaking engagement of the visit. 

“Too often in the past, Washington approached Prime Minister Modi with an attitude of preachiness or even condescension,” Vance said, adding that past US leaders viewed India merely as a source of cheap labour while criticizing the Modi government, “arguably the most popular in the democratic world.”

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Historically, criticism of India's human rights record, often by Democratic politicians, have left New Delhi bristling. 

Vance’s remarks come as India and the US engage in a new round of talks on a proposed Bilateral Trade Agreement (BTA), aimed at addressing long-standing tariff and market access issues.

An Indian delegation, led by chief negotiator Rajesh Aggarwal, is set to hold the second round of face-to-face talks from 23-25 April, with the goal of accelerating the finalization of the first tranche of the BTA.

During the second day of his four-day visit to India (21-24 April), Vance used the platform to signal a shift from previous US administrations. 

Vance also expressed optimism about the potential for closer cooperation in defense and security, highlighting common challenges in the Indo-Pacific region. He affirmed that the US would continue to support India in strengthening its defence capabilities and ensuring regional stability. 

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The Vice President stressed the importance of maintaining open, transparent, and rules-based international systems, particularly amid rising geopolitical tensions.

On a personal note, Vance thanked Modi for hosting him and his family at his Delhi residence on Monday (21 April), reflecting on India’s cultural richness and calling it a country full of vitality and “infinite possibility.”

He emphasized the "unique opportunity" both nations have to deepen trade cooperation. Vance underscored India’s role as one of the world’s fastest-growing economies, with its significant contributions to the global supply chain, especially in textiles, electronics, and infrastructure.

The visiting VP further emphasized that India’s economic growth has made it a key player in global trade, offering substantial opportunities for US businesses looking to diversify their manufacturing bases and tap into new markets.

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Vance, who visited the Akshardham Temple in Delhi on Monday with his ethnic-Indian wife Usha and children, described the experience as both spiritual and emblematic of India’s deep-rooted traditions.

The US Vice President also touched on key trade concerns, particularly surrounding energy and industrial growth. “Some in the West are driven by fear—cutting back on power generation, canceling nuclear and other energy facilities, and then expecting nations like India to do the same,” he said. 

“President Trump rejects these failed ideas. He wants America to grow. He wants India to grow.”

Vance’s visit coincides with critical India-US trade negotiations, where New Delhi is pushing for greater market access for labour-intensive exports like textiles, apparel, and engineering goods. At the same time, Washington is seeking regulatory easing and increased access for dairy and tech products. The talks are also expected to address tariffs on steel and aluminum, with India hoping for relief.

Vance lauded India’s ambition, emphasizing that both countries share the responsibility of building a better future. “The most profound responsibility we have is not to ourselves, but to the next generation,” he remarked. “America seeks to build that brighter world with India—one of innovation, family-building, investment, and shared prosperity.”

His remarks in Jaipur are likely to resonate in New Delhi, as India calibrates its negotiating strategy—especially in light of the Trump administration’s recent tariff actions and reciprocal trade dynamics.

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Vance also highlighted the potential for US-India collaboration in the technology and innovation sectors. With India’s rapidly expanding tech industry and the US's leadership in advanced technologies, he identified areas of potential collaboration, including artificial intelligence, space exploration, and digital infrastructure.

Experts say:

Although the terms of the proposed free trade agreement have not been made public, experts believe they are already taking shape—and may tilt heavily in Washington’s favour. According to an assessment by the Global Trade Research Initiative (GTRI), the absence of Fast Track Authority in the US Congress means America cannot offer binding tariff cuts under the deal. As a result, Indian goods may continue to face standard Most Favoured Nation (MFN) tariffs of over 10% in the US market, even as India could be pushed to cut its tariffs on American cars, agricultural goods, and industrial products.

Moreover, GTRI warned that the TORs may include stringent conditions to limit the use of Chinese-origin components in Indian exports, echoing recent moves by the US to “de-risk” its supply chains. If India resists such terms, it may face the threat of steeper retaliatory tariffs—especially under the Trump administration’s aggressive trade stance, it said.

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“Giving the U.S. a uniquely favourable access could upset this balance and distort trade flows, particularly in global value chains where components often cross multiple borders before becoming finished products,” said Ajay Srivastava, co-founder, GTRI