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Context
U.S. Vice-President J.D. Vance’s first visit to India was overshadowed by the Pahalgam terror attacks, but his messages of solidarity and continued family visit were noted positively in New Delhi. This was the first visit by a U.S. Vice-President in 12 years, since Joe Biden's 2013 visit.
Diplomatic and Strategic Engagements
- Limited Outcomes from High-Level Talks: Vance-Modi Meeting – The talks during the visit did not result in major breakthroughs but led to finalisation of terms of reference for the Bilateral Trade Agreement (BTA) currently under negotiation in Washington.
- Forward Look to Future U.S.-India Ties: Upcoming Quad Summit – Discussions included preparations for President Trump’s planned visit to India for the Quad Summit and broader coordination on Indo-Pacific strategy.
- Nature of the Visit: Largely Private, Yet Strategic – Though termed a “largely private” trip, the Vice-President's tour of Delhi, Agra, and Jaipur with his Indian-origin family served as a soft diplomacy tool and cultural outreach.
Trade and Economic Concerns
- S. Perspective on Trade Policies: Rebalancing, Not War – Vance defended Trump's economic stance, stating the administration does not seek a “trade war” but aims to “rebalance global trade”, with the BTA projected as a “final deal” for fairness.
- S. Demands on Market Access: Non-Tariff Barriers in India – He urged India to remove non-tariff barriers, especially those hindering U.S. dairy and agricultural exports, a highly sensitive domain in Indian trade policy.
- Fossil Fuels and Energy Security: “Drill, Baby, Drill” Policy – Vance promoted U.S. fossil fuel exports under Trump’s energy policy, suggesting India would benefit from increased imports of American oil and natural gas.
Defence and Regulatory Issues
- Defence Cooperation Offers: Co-Production and Jet Sales – Vance reaffirmed India as a trusted defence partner, offering F-35 fighter jets and boosting co-production of defence hardware.
- Nuclear Liability Law Concerns: Regulatory Hurdles – He emphasised the need for amendments to India’s nuclear liability laws to facilitate S. nuclear companies’ entry into India’s civilian nuclear energy sector.
- Immigration and Visa Policy Issues: Student Visa Revocations – Though not publicly raised by Modi, revocation of visas affecting hundreds of foreign students, with Indians being a majority, remains a critical concern in bilateral ties.
Practice Question:
Q. What do you understand by a trade barrier? What is the difference between tariff and non-tariff barriers?
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