Following the meeting between Indian Prime Minister Narendra Modi and US Vice President JD Vance in New Delhi, India and the US are making progress in negotiating a bilateral trade agreement, the countries said. Vance landed in the Indian capital New Delhi on Monday with his wife Usha and three children for his first official visit to India.

"We are committed to mutually beneficial cooperation including trade, technology, defence, energy and people-to-people exchanges," Modi wrote on social media X after the meeting on Monday night. Modi also hosted a dinner at his residence for Vance and his family after the meeting.

Earlier, US President Trump announced high import duties for various countries, including India, with effect from July 9. But he postponed the announcement for 90 days. Since then, some countries, including India, have started talks on trade agreements with the US. Since then, New Delhi and Washington have been trying to reach a preliminary conclusion of trade talks. 

Modi and Trump have a warm personal relationship. Indian Prime Minister Modi was one of the first global leaders to visit Trump after his second term began. But the US president has repeatedly targeted India for its high taxes, calling it a "tax king" and a "big abuser" of trade relations.

In a statement released on Monday after the Vance meeting, US Trade Representative Jameson Greer emphasized the 'serious lack of reciprocity in trade relations with India'. 

India has already cut tariffs on several goods in the past few months and has said it is considering more sweeping cuts to appease Trump. The US wants more access in areas such as agriculture, processed food, auto components, high-end machinery, medical equipment, and more.

But for India, those sectors that create jobs and improve the country's economy are necessary. In Monday's meeting, the two leaders discussed cooperation in defense, strategic technology and energy as well as trade, according to the Indian Prime Minister's Office.