On Tuesday, Vice President JD Vance spoke highly of the trade pact between the United States and India, stating that a cooperation between the Trump government and the government of India will guarantee a “prosperous and peaceful” century.
Vance, speaking in Jaipur, a city in northwest India, also foretold “dire” repercussions in the Indo-Pacific and a “dark time” for the globe in the event that the U.S.-India cooperation collapses.
President Trump’s tough tariff policies and determination to reinvigorate U.S. manufacturing have been challenged by critics who claim that Trump is trying to bring back jobs from the past. However, Vance emphasized that this is far from the reality. “He seeks to rebalance global trade so that America, with friends like India, can build a future worth having for all of our people together.”
In February, President Trump and Prime Minister Modi of India set a goal to increase bilateral commerce between the two countries to $500 billion by the end of the decade, double its current level.
“Both of our governments are hard at work on a trade agreement built on shared priorities, like creating new jobs, building durable supply chains and achieving prosperity for our workers,” Vance told reporters on Tuesday. Prime Minister Modi and I made excellent headway on many fronts in yesterday’s discussion, and it is with great pleasure that we formally announce the terms of reference for the trade negotiations between the United States and India. In my opinion, this lays the groundwork for a final agreement between our countries, which is crucial to achieving the goals put forth by President Trump and Prime Minister Modi. I think the United States and India can achieve a lot if they work together.
Vance made a point of visiting the birthplace of Usha Vance’s parents for the first time on his journey to India. On Monday, Modi was entertained to dinner by the vice president, the second lady, and their three children.
Two world leaders—Trump and Modi—are the only ones with whom Vance’s children have developed a bond, according to his address on Tuesday. The second family initially met during the Paris AI Action Summit in February.
Vance stated, “Our kids just like him,” stating that children are “brutally honest” and generally solid character judges. Like Prime Minister Modi, I simply do. Also, I believe it lays a solid groundwork for where our relationship goes from here.
Both President Trump and I am aware of Prime Minister Modi’s reputation as a skillful negotiator. He is a tough negotiator. We hold him in high esteem for this same reason. In addition, Vance emphasized that they do not hold Prime Minister Modi responsible for standing up for India’s company. However, previous American leaders are to fault since they did not provide the same protections to our workers. We are certain that we can resolve this matter to the advantage of both India and the US.
When discussing the seriousness of the trade talks between India and the United States, Vance seemed to make an indirect reference to China.
“This audience knows better than most: neither Americans nor Indians are alone and looking to scale up their manufacturing capacity,” stated Vance. From low-priced consumer products to weapons, energy infrastructure, and a host of other innovative technology, the competition knows no bounds. In my opinion, the Indo-Pacific region—and the entire world—will face severe repercussions if our countries do not maintain pace.
A more powerful India, in our view, will lead to more economic success. “And we all in this room share the goal of greater stability across the Indo-Pacific,” the vice president added. We can have a peaceful and prosperous 21st century if the US and India can cooperate well, in my opinion. The 21st century has the potential to be a gloomy moment for all of mankind, in my opinion, if we are unable to work together effectively.
Using India “as a source of low-cost labor” to criticize the prime minister’s government, Washington has addressed Modi in the past with a “attitude of preachiness or even one of condensation,” according to Vance.
In his statement, Vance acknowledged that the Trump administration shares the view that “cheap, dependable energy is an essential part of making things and is an essential part of economic independence for both of our nations.” He said that the United States is “blessed with vast natural resources and an unusual capacity to generate energy,” and that India could “build more, make more, and grow more, but at much lower energy costs” if it bought into the growing energy exports from the United States.
“We also want to help India explore its own considerable natural resources, including its offshore natural gas reserves and critical mineral supplies,” according to him. “We believe that American energy can help realize India’s nuclear power production goals, and this is very important as well as its AI ambitions, because as the United States knows well, and I know that India knows well there is no AI future without energy security and energy dominance.”
U.S. citizens desire more access to the Indian market. We want to provide our folks with broader access to this nation because it is a terrific environment to do business,” Vance added. Plus, we think Indians would benefit greatly from increased trade with the US. We are both benefiting greatly from this collaboration. It will undoubtedly take place in the far future.