Vance expresses great hopes about trade ties

United States Vice President J.D.Vance, who is on a four-day non-official visit to India with his India-origin wife Usha, and their three children, has expressed great hopes about India-US trade relations. Speaking in the western city of Jaipur on Tuesday, Vance was quite expansive in his views on bilateral relations.

He said that in his talks with Indian Prime Minister Narendra Modi, they have set a road map for the trade talks. He described Modi as a tough bargainer. Vance said, “Prime Minister Modi is a tough negotiator. He drives a hard bargain.”

He argued that India should buy more from the US, especially armaments and also energy. He said that F-35 jets would help protect India. There was a hint that India should buy American oil. But Vance said that if India and the US work together, there would be global prosperity, and that if they did not then there would be dark times.

Observers are sure to describe his remarks as going overboard. But there is a clear American vision behind the US Vice President’s remarks. America under President Donald Trump perceives China as the main rival in global trade and also military prowess.

The US is looking to India as a big partner to contain China in the Asia-Pacific. But India has been discreet on the issue. Despite its own differences with China, which includes the long-standing border issue, India is not willing to play the American game against China. But it is not shy of benefiting from American businesses shifting to India if they are pulled out from China. Foreign policy experts in India feel that India has the potential to grow on its own and it does not have to depend on businesses moving away from China and moving to India. Vance’s statements make it very clear that Washington looks to New Delhi as the main partner in its power against China in the Asia Pacific. The Vice President was not making off-the-cuff remarks on India-US relations. He was stating the views of the Trump administration and there is clear indication that America wants strong ties with India to counter China.

Interestingly, it is India, Italy and Great Britain which have not hit back at President Trump’s reciprocal tariffs with counter-tariffs. New Delhi hopes to clinch a bilateral trade agreement before the 90-day pause ends. India wants to close the first tranche of the trade deal before the 90 days get over, and get the whole deal done before the end of the year.

The Americans are not averse to reaching a deal with India. But the Americans are insistent that India has to increase its purchases from America, and America is also very clear what it wants to sell India – defence equipment and energy.

But India is not likely to oblige Delhi because it has been buying defence equipment from Russia for more than a half century now. And ever since the Russian invasion of Ukraine and Western sanctions against Russia, India has been buying oil from Russia. India would not break with Russia.

But New Delhi is certainly keen on diversifying its arms purchases and it would not mind buying from America. And it is more likely that America would settle to do business with a pragmatic India.

Interestingly, China too recognises the strategic importance of India in the global trade system. So the Chinese have been quite flexible in seeking better relations with India. It is not surprising that India finds itself in a sweet spot where America and China want strong trade ties with India. China is keen that India should not join the America-led Western military alliance targeting China.