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Vance and Modi are likely to discuss a potential US-India trade deal. Here's what to know

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Vance and Modi are likely to discuss a potential US-India trade deal. Here's what to know
News

News

Vance and Modi are likely to discuss a potential US-India trade deal. Here's what to know

2025-04-21 13:33 Last Updated At:13:41

NEW DELHI (AP) — U.S. Vice President JD Vance began a four-day visit to India on Monday as the two countries seek to unlock economic opportunities and negotiate a bilateral trade deal.

Vance will meet Prime Minister Narendra Modi in New Delhi for talks on the economy, trade and geopolitical ties. Vance’s visit is seen as an important diplomatic mission by President Donald Trump’s administration, and it coincides with a rapidly intensifying trade war between Washington and Beijing, which is New Delhi's main rival in the region.

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U.S. Vice President JD Vance departs Giovan Battista Pastine International Airport in Ciampino, Italy en route to New Delhi, India, Saturday, April 20, 2025. (Kenny Holston/The New York Times via AP, Pool)

U.S. Vice President JD Vance departs Giovan Battista Pastine International Airport in Ciampino, Italy en route to New Delhi, India, Saturday, April 20, 2025. (Kenny Holston/The New York Times via AP, Pool)

U.S. Vice President JD Vance departs Giovan Battista Pastine International Airport in Ciampino, Italy en route to New Delhi, India, Saturday, April 20, 2025. (Kenny Holston/The New York Times via AP, Pool)

U.S. Vice President JD Vance departs Giovan Battista Pastine International Airport in Ciampino, Italy en route to New Delhi, India, Saturday, April 20, 2025. (Kenny Holston/The New York Times via AP, Pool)

FILE - U.S. Vice President JD Vance and second lady Usha Vance, with their children Ewan, Vivek and Mirabel, wave as they arrive at the Munich airport in Munich, Germany, Feb. 13, 2025. (AP Photo/Matthias Schrader, File)

FILE - U.S. Vice President JD Vance and second lady Usha Vance, with their children Ewan, Vivek and Mirabel, wave as they arrive at the Munich airport in Munich, Germany, Feb. 13, 2025. (AP Photo/Matthias Schrader, File)

FILE - President Donald Trump and Vice President JD Vance pause near the Oval Office after and event to welcome the 2025 College Football National Champions, the Ohio State University football team on the South Lawn of the White House, April 14, 2025, in Washington. (AP Photo/Alex Brandon, File)

FILE - President Donald Trump and Vice President JD Vance pause near the Oval Office after and event to welcome the 2025 College Football National Champions, the Ohio State University football team on the South Lawn of the White House, April 14, 2025, in Washington. (AP Photo/Alex Brandon, File)

U.S. Vice President JD Vance, right, and Indian Prime Minister Narendra Modi attend a bilateral meeting at the residence of the U.S. Ambassador on the sidelines of the Artificial Intelligence Action Summit in Paris, Feb. 11, 2025. (Leah Millis/Pool Photo via AP, File)

U.S. Vice President JD Vance, right, and Indian Prime Minister Narendra Modi attend a bilateral meeting at the residence of the U.S. Ambassador on the sidelines of the Artificial Intelligence Action Summit in Paris, Feb. 11, 2025. (Leah Millis/Pool Photo via AP, File)

A trade deal between India and the U.S. could significantly enhance economic ties between the two countries and potentially strengthen diplomatic ties.

The U.S. is also India’s largest trading partner, with bilateral trade valued at $190 billion until recently.

India’s Foreign Ministry has said the visit will “provide an opportunity for both sides to review the progress in bilateral relations” and the two leaders will “exchange views on regional and global developments of mutual interest.”

Here’s what to know about Vance’s visit:

Vance’s arrival in India comes weeks after Director of National Intelligence Tulsi Gabbard was in India for a geopolitical conference and two months after Modi met Trump in Washington.

Modi was among the first leaders to visit the U.S. and hold talks with Trump after he returned to the White House. During his visit, Modi hailed a “mega partnership” with the U.S. and kickstarted a negotiation process to minimize the possible fallout of Trump’s tariffs after it had already cut tariffs on a range of U.S. goods.

Regardless, Trump targeted India with a 26% levy as part of his now-paused tariff program, which has provided temporary relief for Indian exporters.

During his visit, Modi sought to soften impending trade barriers by saying he was open to reducing more tariffs on U.S. goods, repatriating undocumented Indian nationals and buying military gear. The two countries also agreed to start talks toward clinching the bilateral trade agreement.

Modi on Friday said he spoke with Elon Musk, noting that he and the SpaceX CEO “discussed the immense potential for collaboration in the areas of technology and innovation,” adding “India remains committed to advancing our partnerships with the U.S. in these domains.”

India is a close partner of the U.S. for bilateral trade, foreign direct investments, defense cooperation and an important strategic ally in combating the rising influence of China in the Indo-Pacific region.

It is also part of the Quad, which is made up of the United States, India, Japan and Australia and is seen as a counterbalance to China’s expansion in the region.

Leading U.S. companies such as Apple Inc. and Google have expanded operations in India in recent years. Last month, Musk's Starlink entered into agreements with two of India’s top telecom operators to provide satellite-based internet services.

To further boost trade ties, the U.S. and India have set an ambitious target of more than doubling their bilateral trade to $500 billion by 2030 under the expected trade deal agreement.

The negotiations are especially urgent for New Delhi as it could be hit hard by Trump’s reciprocal tariffs, particularly in the agriculture, processed food, auto components, high-end machinery, medical equipment and jewelry sectors. This poses a significant challenge for Modi's government as it hopes to improve the country's economy and generate jobs with an export-led recovery.

Modi established a good working relationship with Trump during his first term in office. It now appears that the two leaders are likely to further boost cooperation between their countries, particularly in trade. Chinese President Xi Jinping is aiming to position Beijing as a reliable trade partner in the Asia-Pacific region amid rising tensions with Washington.

India has also already taken a number of steps to win over Trump. It will purchase more oil, energy and defense equipment, including the fifth-generation stealth fighter jets, from the U.S.

The U.S., however, wants greater market access for its agricultural and dairy products in India, but New Delhi has been reluctant so far as the farm sector employs the bulk of the country’s workforce.

Vance’s visit to India marks his first official trip to the country, which has added significance for the second family. His wife Usha Vance — a practicing Hindu — is the daughter of immigrants from South India.

In his memoir “Hillbilly Elegy,” Vance described his wife as a “supersmart daughter of Indian immigrants” whom he met at Yale Law School. Usha’s parents moved to the U.S. in the late 1970s.

Vance will be accompanied by Usha, their children and other senior members of the U.S. administration, and the couple will visit the Indian cities of Jaipur and Agra and participate in engagements at cultural sites, a readout from the White House said.

U.S. Vice President JD Vance departs Giovan Battista Pastine International Airport in Ciampino, Italy en route to New Delhi, India, Saturday, April 20, 2025. (Kenny Holston/The New York Times via AP, Pool)

U.S. Vice President JD Vance departs Giovan Battista Pastine International Airport in Ciampino, Italy en route to New Delhi, India, Saturday, April 20, 2025. (Kenny Holston/The New York Times via AP, Pool)

U.S. Vice President JD Vance departs Giovan Battista Pastine International Airport in Ciampino, Italy en route to New Delhi, India, Saturday, April 20, 2025. (Kenny Holston/The New York Times via AP, Pool)

U.S. Vice President JD Vance departs Giovan Battista Pastine International Airport in Ciampino, Italy en route to New Delhi, India, Saturday, April 20, 2025. (Kenny Holston/The New York Times via AP, Pool)

FILE - U.S. Vice President JD Vance and second lady Usha Vance, with their children Ewan, Vivek and Mirabel, wave as they arrive at the Munich airport in Munich, Germany, Feb. 13, 2025. (AP Photo/Matthias Schrader, File)

FILE - U.S. Vice President JD Vance and second lady Usha Vance, with their children Ewan, Vivek and Mirabel, wave as they arrive at the Munich airport in Munich, Germany, Feb. 13, 2025. (AP Photo/Matthias Schrader, File)

FILE - President Donald Trump and Vice President JD Vance pause near the Oval Office after and event to welcome the 2025 College Football National Champions, the Ohio State University football team on the South Lawn of the White House, April 14, 2025, in Washington. (AP Photo/Alex Brandon, File)

FILE - President Donald Trump and Vice President JD Vance pause near the Oval Office after and event to welcome the 2025 College Football National Champions, the Ohio State University football team on the South Lawn of the White House, April 14, 2025, in Washington. (AP Photo/Alex Brandon, File)

U.S. Vice President JD Vance, right, and Indian Prime Minister Narendra Modi attend a bilateral meeting at the residence of the U.S. Ambassador on the sidelines of the Artificial Intelligence Action Summit in Paris, Feb. 11, 2025. (Leah Millis/Pool Photo via AP, File)

U.S. Vice President JD Vance, right, and Indian Prime Minister Narendra Modi attend a bilateral meeting at the residence of the U.S. Ambassador on the sidelines of the Artificial Intelligence Action Summit in Paris, Feb. 11, 2025. (Leah Millis/Pool Photo via AP, File)

DUBAI, United Arab Emirates (AP) — U.S. President Donald Trump said Iran wants to negotiate with Washington after his threat to strike the Islamic Republic over its bloody crackdown on protesters, a move coming as activists said Monday the death toll in the nationwide demonstrations rose to at least 544.

Iran had no immediate reaction to the news, which came after the foreign minister of Oman — long an interlocutor between Washington and Tehran — traveled to Iran this weekend. It also remains unclear just what Iran could promise, particularly as Trump has set strict demands over its nuclear program and its ballistic missile arsenal, which Tehran insists is crucial for its national defense.

Meanwhile Monday, Iran called for pro-government demonstrators to head to the streets in support of the theocracy, a show of force after days of protests directly challenging the rule of 86-year-old Supreme Leader Ayatollah Ali Khamenei. Iranian state television aired chants from the crowd, who shouted “Death to America!” and “Death to Israel!”

Trump and his national security team have been weighing a range of potential responses against Iran including cyberattacks and direct strikes by the U.S. or Israel, according to two people familiar with internal White House discussions who were not authorized to comment publicly and spoke on condition of anonymity.

“The military is looking at it, and we’re looking at some very strong options,” Trump told reporters on Air Force One on Sunday night. Asked about Iran’s threats of retaliation, he said: “If they do that, we will hit them at levels that they’ve never been hit before.”

Trump said that his administration was in talks to set up a meeting with Tehran, but cautioned that he may have to act first as reports of the death toll in Iran mount and the government continues to arrest protesters.

“I think they’re tired of being beat up by the United States,” Trump said. “Iran wants to negotiate.”

He added: “The meeting is being set up, but we may have to act because of what’s happening before the meeting. But a meeting is being set up. Iran called, they want to negotiate.”

Iran through country's parliamentary speaker warned Sunday that the U.S. military and Israel would be “legitimate targets” if America uses force to protect demonstrators.

More than 10,600 people also have been detained over the two weeks of protests, said the U.S.-based Human Rights Activists News Agency, which has been accurate in previous unrest in recent years and gave the death toll. It relies on supporters in Iran crosschecking information. It said 496 of the dead were protesters and 48 were with security forces.

With the internet down in Iran and phone lines cut off, gauging the demonstrations from abroad has grown more difficult. The Associated Press has been unable to independently assess the toll. Iran’s government has not offered overall casualty figures.

Those abroad fear the information blackout is emboldening hard-liners within Iran’s security services to launch a bloody crackdown. Protesters flooded the streets in the country’s capital and its second-largest city on Saturday night into Sunday morning. Online videos purported to show more demonstrations Sunday night into Monday, with a Tehran official acknowledging them in state media.

In Tehran, a witness told the AP that the streets of the capital empty at the sunset call to prayers each night. By the Isha, or nighttime prayer, the streets are deserted.

Part of that stems from the fear of getting caught in the crackdown. Police sent the public a text message that warned: “Given the presence of terrorist groups and armed individuals in some gatherings last night and their plans to cause death, and the firm decision to not tolerate any appeasement and to deal decisively with the rioters, families are strongly advised to take care of their youth and teenagers.”

Another text, which claimed to come from the intelligence arm of the paramilitary Revolutionary Guard, also directly warned people not to take part in demonstrations.

“Dear parents, in view of the enemy’s plan to increase the level of naked violence and the decision to kill people, ... refrain from being on the streets and gathering in places involved in violence, and inform your children about the consequences of cooperating with terrorist mercenaries, which is an example of treason against the country,” the text warned.

The witness spoke to the AP on condition of anonymity due to the ongoing crackdown.

The demonstrations began Dec. 28 over the collapse of the Iranian rial currency, which trades at over 1.4 million to $1, as the country’s economy is squeezed by international sanctions in part levied over its nuclear program. The protests intensified and grew into calls directly challenging Iran’s theocracy.

Nikhinson reported from aboard Air Force One.

In this frame grab from video obtained by the AP outside Iran, a masked demonstrator holds a picture of Iran's Crown Prince Reza Pahlavi during a protest in Tehran, Iran, Friday, January. 9, 2026. (UGC via AP)

In this frame grab from video obtained by the AP outside Iran, a masked demonstrator holds a picture of Iran's Crown Prince Reza Pahlavi during a protest in Tehran, Iran, Friday, January. 9, 2026. (UGC via AP)

In this frame grab from footage circulating on social media from Iran shows protesters taking to the streets despite an intensifying crackdown as the Islamic Republic remains cut off from the rest of the world in Tehran, Iran, Friday, Jan. 9, 2026.(UGC via AP)

In this frame grab from footage circulating on social media from Iran shows protesters taking to the streets despite an intensifying crackdown as the Islamic Republic remains cut off from the rest of the world in Tehran, Iran, Friday, Jan. 9, 2026.(UGC via AP)

In this frame grab from footage circulating on social media from Iran showed protesters once again taking to the streets of Tehran despite an intensifying crackdown as the Islamic Republic remains cut off from the rest of the world in Tehran, Iran, Saturday Jan. 10, 2026. (UGC via AP)

In this frame grab from footage circulating on social media from Iran showed protesters once again taking to the streets of Tehran despite an intensifying crackdown as the Islamic Republic remains cut off from the rest of the world in Tehran, Iran, Saturday Jan. 10, 2026. (UGC via AP)

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