The Indian side and the US are holding a full-day round of bilateral discussions, raising expectations that paused negotiations on a bilateral agreement may in the near future resume.
A team chaired by a top US trade official is currently in New Delhi to confer with representatives from India's trade ministry.
India clarified that the meeting does not represent the start of a fresh phase of negotiations, describing it instead as an exploratory exchange aimed at finding paths to secure a bilateral understanding.
Trade discussions had previously halted after the American administration imposed significant duties on India's goods, partly in response to India's acquisition of Russia's oil and military equipment. India has defended its stance, citing domestic security requirements, and termed the measures disproportionate.
These tariffs, along with strong comments from American leaders, have contributed to a rapid decline in ties between the two traditional allies.
India is a major supplier of goods such as apparel, shrimp, and gems to the US, and the duties have already impacted local production and livelihoods.
As a result, Tuesday's discussions are being closely monitored by observers and stakeholders alike.
According to a key Indian negotiator, the session is intended to discuss avenues for reaching a mutual deal and is not officially part of the scheduled negotiation phases.
A previous round of talks was canceled last period following the tariff imposition and India's decision to halt purchasing Russia's oil.
However, in the past few days, expectations have increased as American representatives have adopted a more flexible stance, and India has reiterated that discussions are ongoing.
One US trade official commented that India is coming to the negotiating table and expressed hope about the outcome.
This same adviser had previously been critical of India's policies, but latest comments suggest a shift in tone.
Additionally, a social media exchange between the US and Indian heads of state last week signaled optimism regarding ongoing discussions.
The American leader mentioned that the two nations were working to address trade issues, and the Indian leader reciprocated the optimism, calling the two nations natural partners.
A nominee for the position of US ambassador to India also expressed confidence, stating that the bilateral agreement could be resolved within the coming weeks.
He noted that the two sides were not far apart and were currently negotiating the specific details of the agreement.
Still, key disagreements remain, especially in sectors such as farming and dairy.
The US has long pushed for greater market entry to India's farm sector, viewing it as a major untapped market.
India, however, has consistently protected its agricultural industry, citing concerns related to self-sufficiency, farmer incomes, and the interests of millions marginal agricultural workers.
Recently, a senior US trade official questioned India's safeguard policies, asking why a country of over a billion people would not import US agricultural goods.
Indian experts, however, have maintained that India should not yield to outside pressure to open its farm sector, stressing the priority of national self-reliance and food stability.
