U.S. Vice President JD Vance has commenced a four-day visit to India, focusing on advancing a bilateral trade agreement and addressing tariff concerns. His discussions with Prime Minister Narendra Modi aim to prevent the escalation of U.S. tariffs on Indian exports, which are currently under a 90-day pause but could increase from 10% to 26% if no agreement is reached by July .
Key Objectives of the Visit
Trade Agreement Negotiations: India and the U.S. are working towards a trade deal that could double bilateral trade to $500 billion by 2030. India has indicated willingness to reduce tariffs on over half of its U.S. imports, particularly in energy and defense sectors .
Tariff Concerns: The Trump administration has labeled India a “tariff king,” citing its average tariff rate of 12% compared to the U.S.’s 2.2%. The potential increase in tariffs could significantly impact Indian exports, including pharmaceuticals and automotive products.
Immigration and H-1B Visas: The visit also touches on immigration issues, with discussions likely around the H-1B visa program, which is vital for Indian professionals working in the U.S. Modi may seek assurances on visa stability in exchange for cooperation on deporting illegal immigrants
