By Shan Li

On his first trip to India, Vice President JD Vance dined with Indian Prime Minister Narendra Modi, announced progress toward a bilateral trade deal between the two countries and compared New Delhi favorably with Western capitals.

"There's a vitality to India, a sense of infinite possibility," Vance said in a speech during a four-day visit with his Indian-American wife Usha Vance and their three children. "It's a striking contrast with too many in the West, where some in our leadership class seem stricken by self doubt and even fear of the future."

Vance said the relationship between the U.S. and India would define the 21st century. The South Asian nation's pride in its history and culture, he said, contrasted with Western countries that took on the "same bland, secular, universal values."

Conversely, during his first visit to Europe after taking office, the vice president excoriated the continent's leaders, accusing them of repressing free speech and ignoring the will of voters on issues such as mass migration.

Under Modi, India has promoted its Hindu-majority identity, and critics say the rights of India's religious minorities, including its large Muslim population, have eroded during the hard-right leader's more than decade in power.

India and the U.S. have grown closer in recent years as trade partners and defense allies to counter an increasingly expansionist China. New Delhi is scrambling to cement an early trade agreement with the U.S., which is its largest trade partner, before a 90-day pause on high tariffs announced by the Trump administration expires in July. The so-called reciprocal tariffs would levy duties of 26% on Indian exports. President Trump in the past has called India a "tariff king."

The U.S. and India announced they had agreed to broad terms of negotiation for a potential bilateral trade deal, following Vance's meeting with Modi on Monday evening. The Office of the U.S. Trade Representative said the U.S. would seek increased market access, lower tariffs and non-tariff barriers, and a "robust set of additional commitments."

During Modi's visit to Washington, D.C. in February, the Indian leader and Trump said they aimed to boost bilateral trade to $500 billion by 2030, a nearly fourfold increase from current levels. So far, neither side has disclosed details about what they are asking for -- or offering.

In a report in March, the Office of the U.S. Trade Representative outlined numerous nuisances limiting U.S. trade with India apart from high tariffs. These include technical or quality measures that hold up or limit exports, and compliance inspections that disrupt business. The report also noted that India subjects foreign e-commerce firms to different rules than homegrown competitors when it comes to what they can sell on their platforms.

Meanwhile, past big-ticket Indian purchases of U.S. goods -- from Boeing airplanes for civilian airlines to GE engines for domestic military production -- have faced delays.

Vance said on Tuesday the U.S. plans to increase co-production of defense equipment with India, boost energy exports to India and help New Delhi explore its own offshore natural-gas and critical-mineral supplies. He urged India to buy more American ethanol.

"This administration recognizes that cheap dependable energy is an essential part of making things," Vance said. It's "an essential part of economic independence for both of our nations."

He also raised a liability law that has deterred U.S. companies from investing in nuclear power plants in India. India officials have signaled in recent weeks they plan to amend the law, which presently holds suppliers responsible for accidents at power plants they take part in building.

Vance's remarks offered further reassurance to Indian officials and policy experts who have seen opportunities for India arising from the tariffs unleashed on Trump's "Liberation Day." If the reciprocal tariffs are eventually applied at the announced rates, India faces far lower tariffs than China or even Vietnam. The U.S. trade deficit with India stood at nearly $46 billion in 2024.

The U.S. vice president also offered a warning in case the two countries fail to cooperate.

"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.

At the end of his speech, Vance said that his three children -- ages 3, 5 and 7 -- have taken a great liking to only two of the world leaders they have met so far: Trump and Modi.

When Vance first met Modi at an artificial-intelligence conference in Paris in February, the prime minister made a point of wishing his son Vivek a happy fifth birthday and bringing him a present.

"The great thing about kids is they are brutally honest," Vance said. "Our kids just like him."

Write to Shan Li at shan.li@wsj.com

(END) Dow Jones Newswires

April 22, 2025 11:51 ET (15:51 GMT)

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