New Delhi: US Vice-President J.D. Vance Tuesday warned of “dire” consequences for the world if India and the US “fail to keep pace” in scaling up across manufacturing, energy, cutting-edge technologies, and defence.
Speaking at the Rajasthan International Centre in Jaipur, Vance said, “Neither Americans nor Indians are alone in looking to scale up their manufacturing capacity. The competition extends well beyond cheap consumer goods and into munitions, energy, infrastructure, and all sorts of other cutting-edge technologies. I believe that if our nations fail to keep pace, the consequences for the Indo-Pacific, but really the consequences for the entire world, will be quite dire.”
In his speech, addressing the Ananta Centre India-US forum, the US vice-president also pushed for deeper ties in strategic areas between the two countries. He called on New Delhi to reduce the non-tariff barriers and allow American companies greater access to Indian markets, saying it would help India gain greater energy security.
Vance is currently on a four-day trip in India. While it is primarily a personal visit, along with his family, he met with Prime Minister Narendra Modi Monday evening. The two leaders announced the terms of reference for the bilateral trade agreement being negotiated between India and the US.
“I’m encouraged by everything our nations are doing to get us there… both of our governments are hard at work on a trade agreement built on shared priorities, like creating new jobs, building durable supply chains, and achieving prosperity for our workers,” Vance further said Tuesday. “In our meeting yesterday, Prime Minister Modi and I made very good progress on all of those points.”
On Monday, Modi and Vance noted the remarkable progress in the India-US COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce, and Technology), announced during a meeting between the Prime Minister and US President Donald Trump in February.
Vance Tuesday highlighted the areas the US is keen to collaborate with India in, such as defence, energy, nuclear energy, and cutting-edge technologies. Without naming the European Union, he also flagged the difference in the approach taken by Washington in trade negotiations with India.
“Now I believe that our nations have much to offer one another. And that’s why we come to you as partners looking to strengthen our relationship. Now we’re not here to preach that you do things any one particular way,” said Vance, saying that, in the past, administrations have dealt with India with an “attitude of preachiness”.
India is also negotiating a free trade agreement with the EU.
Vance also rejected the claims that Trump has sought to start a global trade war, characterising the tariffs announced earlier this month as an effort to “rebalance” global trade.
Trump introduced a baseline tariff of 10 percent on imports of goods from various countries, along with additional tariffs on over 60 countries. India, which Trump has repeatedly referred to as ‘tariff king’, was set to face an additional tariff at 27 percent. However, there is an ongoing 90-day pause on the additional tariffs, giving nations a chance to negotiate deals with the US.
“Now, critics have attacked… President Trump, for starting a trade war in an effort to bring back the jobs of the past. But nothing could be further from the truth. He seeks to rebalance global trade so that America, with friends like India, can build a future worth having for all of our people together,” said Vance.
The two sides agreed to a bilateral trade deal during Modi’s visit to Washington in February, and promised to announce the first tranche by autumn 2025.
‘Defence & energy basis of India-US ties’
Vance reaffirmed Trump’s offer of selling India high-technology defence platforms, including the F-35 fighter jets, which have, to date, been offered only to their allies. He said defence ties between the two countries were “on par with America’s closest allies and friends”.
“America does more military exercises with India than we do with any other nation on Earth,” said Vance. “From Javelins to Stryker combat vehicles, our nations will co-produce many of the munitions and equipment that we’ll need to deter foreign aggressors, not because we seek war, but because we seek peace and we believe the best path to peace is through mutual strength.”
The US vice-president further said that the launch of the joint Autonomous Systems Industry Alliance (ASIA) would enable US and India to “develop the most state-of-the-art maritime systems needed for victory”.
“Both of us know that the region must remain safe from any hostile powers that seek to dominate it. Growing relations between our countries over the last decade are part of what led America to designate India a major defence partner, the first of that class.”
He acknowledged the strategic nature of energy resources and appeared to be criticising European countries for closing down nuclear power plants and limiting investments into energy production. He urged India to import energy from the US, promising that “it will be able to build more, make more, and grow more, but at much lower energy costs”.
“And I know our farmers would be delighted to support India’s energy security ambitions. We welcome the Modi government’s budget announcement to amend India’s civil nuclear liability laws, which currently prevent US producers from exporting small modular reactors and building larger US-designed reactors in India,” said Vance.
“There’s much that we can create, much that we can do together. We believe that American energy can help realise India’s nuclear power production goals, and this is very important, as well as its AI ambitions.”
The push for India to purchase more defence platforms and energy from the US is part of Trump’s larger vision to cut the trade deficits between the two countries. In 2023-2024, India exported roughly $77.1 billion worth of goods to the US, while importing around $42 billion worth of goods from it.
“But I believe that this rebalancing [in trade] is going to produce great benefits for American workers. It’s going to produce great benefits for the people of India. And because our partnership is so important to the future of the world, I believe President Trump’s efforts, joined, of course, by the whole country of India and Prime Minister Modi, will make the 21st century the best century in human history,” said Vance.
(Edited by Sanya Mathur)
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