Vice President Vance on Tuesday hailed progress on trade talks with Prime Minister Narendra Modi, expressing optimism about a deal with India as it tries to avoid being hit with hefty tariffs from President Trump.

“As many of you are aware, 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 said in remarks at the Rajasthan International Center in Jaipur.

He added, “in our meeting yesterday, Prime Minister Modi and I made very good progress on all those points, and we are especially excited to formally announce that America and India have officially finalize the terms of reference for the trade negotiation. I think this is a vital step.”

The vice president’s comments received applause from the crowd, which was made up of business leaders and students, according to reporters traveling with Vance in India.

“I believe this is a vital step toward realizing President Trump’s and Prime Minister Modi’s vision, because it sets a road map toward a final deal between our nations, he said. “I believe there is much that America and India can accomplish together.”

The vice president also warned though of a “dark time” ahead if the U.S. and India doesn’t collaborate economically.

“I believe that if India and the United States work together successfully, we’re going to see a 21st century that is prosperous and peaceful,” Vance continued. “But I also believe that if we fail to work together successfully, the 21st century could be a very dark time for all of humanity.”

The vice president met with Modi at his residence on Monday, after which they had an expanded meeting with members from the U.S. and India delegations and a family dinner with second lady Usha Vance and their three children.

The talks come as India was hit with a 26 percent import tax briefly before Trump paused the reciprocal tariff program for most countries for 90 days, keeping his 10 percent baseline tariffs in place.

The U.S. is India’s largest trading partner, and the country is aiming to avoid being hit hard from tariffs that could impact its agriculture, processed food and medical equipment industries, among others.

While in India, Vance and his family visited the Akshardham Temple and met with temple officials on Monday. They also greeted U.S. Embassy staff before leaving New Delhi to travel to Jaipur.