The Indian side and the US are holding a extended series of bilateral talks, sparking hopes that halted negotiations on a mutual deal may shortly resume.
A delegation led by a senior US trade official is presently in Delhi to confer with representatives from India's commerce department.
India emphasized that the meeting does not mark the start of a new round of negotiations, describing it instead as an exploratory discussion aimed at exploring ways to achieve a bilateral understanding.
Trade discussions had previously stalled after the US government enforced hefty duties on Indian goods, partly in response to India's acquisition of Russian energy and military hardware. India has defended its stance, citing domestic security requirements, and called the measures disproportionate.
These duties, along with pointed criticism from US officials, have led to a swift deterioration in ties between the two traditional partners.
India is a significant exporter of goods such as apparel, shrimp, and gems to the United States, and the tariffs have already affected local industry and employment.
As a result, Tuesday's meeting are being attentively monitored by observers and businesses alike.
As stated by a senior Indian negotiator, the meeting is designed to discuss options for reaching a mutual deal and is not officially part of the scheduled talk rounds.
A prior round of negotiations was canceled last period following the tariff imposition and India's decision to stop buying Russian oil.
However, in the past few days, hopes have risen as US representatives have adopted a more flexible stance, and India has confirmed that discussions are still proceeding.
One American trade adviser remarked that India is coming to the negotiating table and expressed hope about the results.
This same official had earlier been critical of India's policies, but recent comments suggest a change in approach.
Additionally, a social media exchange between the American and Indian heads of state last week reflected optimism regarding ongoing negotiations.
The American president mentioned that the two nations were continuing to address trade barriers, and the Indian prime minister echoed the optimism, referring to the two countries close friends.
A designated for the role of US ambassador to India also expressed confidence, saying that the bilateral deal could be resolved within the coming weeks.
He noted that the two sides were not far apart and were currently discussing the finer details of the deal.
Still, major disagreements persist, especially in sectors such as farming and dairy products.
The United States has for years sought greater market entry to India's agricultural market, seeing it as a major potential market.
India, however, has strongly protected its agricultural industry, highlighting reasons related to food security, rural livelihoods, and the welfare of countless small agricultural workers.
Recently, a senior US trade secretary questioned India's safeguard measures, wondering why a nation of over a billion people would not purchase US agricultural goods.
Indian analysts, however, have argued that India should not yield to external demands to open its agricultural sector, emphasizing the priority of economic self-reliance and nutritional stability.
