Vice President JD Vance announced that the U.S. and India have set the terms for a trade negotiation, reiterating to double bilateral trade to a whopping $500 billion by the end of the decade.
What Happened: In a notable address at the India-U.S. Forum in Jaipur, India, on Tuesday, Vance articulated a bold vision for deepening ties between the United States and India. The potential deal marks a crucial step towards realizing the goal set by President Donald Trump and Indian Prime Minister Narendra Modi in February. The deal is expected to focus on job creation, resilient supply chains, and prosperity for workers in both nations.
“America and India have officially finalized the terms of reference for the trade negotiation,” says JD Vance.
Vance outlined three key areas of cooperation: defense, energy, and technology. The U.S.-India Compact will enhance the defense relationship through co-production of munitions and equipment, including the proposed American F-35 jets, to strengthen India’s air defenses.
Emphasizing energy security, Vance highlighted the potential benefits to India from expanded American oil and gas production and urged India to lower non-tariff barriers to American energy products.
On the technology front, Vance lauded the U.S.-India Trust Initiative as a foundation for future collaboration, suggesting a synergy between India’s startup ecosystem and America’s AI hardware prowess.
The Vice President also slammed the previous U.S. administrations for treating India only as a ‘source of low cost labor.’ Speaking about Trump’s vision, Vance stated, “He wants America to grow, he wants India to grow.”
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Why It Matters: The framework of the agreement comes after Vance’s visit to India amid escalating global trade disputes. The visit, marked by discussions with Prime Minister Modi, aimed at easing trade tensions sparked by Trump’s tariff policies.
However, the proposed trade deal has not been without controversy. The All India Kisan Sabha (All India Farmers Union) expressed concerns that the agreement could threaten the livelihoods of Indian farmers.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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