India should consider “dropping some of the non-tariff barriers” to ensure American companies have better access to the Indian market, and buy more American energy and defence hardware, US vice president JD Vance said on Tuesday, asserting that ties between the two countries will shape the 21st century. Vance’s remarks, made at an event in Jaipur, come at a time India and the US are working hard to finalise a bilateral trade agreement (BTA) by the autumn of this year. India hopes to conclude a part of the deal within the 90-day pause on reciprocal tariffs by the US.
“If India and the US work together successfully, we’re going to see a 21st century that is prosperous and peaceful… But I also believe that if we fail to work together successfully, the 21st century could be a very dark time for all of humanity,” he said. He announced that India and the US have finalised the terms of reference for the BTA, setting “a roadmap toward a final deal.” The US vice-president also heaped praises on Prime Minister Narendra Modi, a day after their meeting in New Delhi, and said the latter “is a tough negotiator. He drives a hard bargain.” In a statement issued after the Modi-Vance meeting, US Trade Representative Jamieson Greer highlighted the progress in the negotiations for the BTA, launched by Modi and US President Donald Trump in Washington in February.
However, the statement said, “There is a serious lack of reciprocity in the trade relationship with India.” “These ongoing talks will help achieve 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 added in the statement. ALSO READ Centre extends RBI Deputy Governor T Rabi Sankar’s tenure In his address, Vance said there is much that America and India can accomplish together in diverse areas including high technology, defence, trade and energy.
“We want to work together more, and we want your nation to buy more of our military equipment…,” he said. “We’re not here to preach that you do things any one particular way. Too often in the past, Washington approached Prime Minister Modi with an attitude of preaching this, or even one of condescension.
Prior administrations saw India as a source of low-cost labour. On the one hand, even they criticised the Prime Minister’s government, arguably the most popular in the democratic world, and as I told Prime Minister Modi last night, he’s got approval ratings that would make me jealous. But it wasn’t just India.
This attitude captured too much of our economic relationship with the rest of the world, so we shipped countless jobs overseas…We traded hard power for soft power,” Vance said. He said President Trump seeks to rebalance global trade so that the US, with friends like India, can build a better future. Trade relations must be based on fairness, Vance said, referring to Trump’s policy on trade and tariff.
He said Trump wants both countries to grow and “he wants to build the future with our partners all over the globe”. Vance is on a four-day official-cum-private visit to India, along with his wife and children. The visit is expected to give a push to the bilateral trade talks.
The US has been seeking greater access to the Indian market for its companies and dairy products, among other demands. According to a Financial Times report, the Trump administration intends to press India to give online retailers such as Amazon and Walmart full access to its $125-billion (about `10 lakh crore) e-commerce market. Amazon and Walmart operate in India through local units but face restrictions on holding inventory and directly selling to consumers.
