India and the United States discussed pathways to conclude an interim trade deal, the Indian government said in a statement on Wednesday, after talks between its trade minister Piyush Goyal and US Trade Representative Jamieson Greer.
Greer, the top US trade diplomat, is in India for two-day talks over a deal seen as crucial to mending bilateral ties amid diplomatic tensions.
His trip follows the first meeting in more than a year between Prime Minister Narendra Modi and US President Donald Trump on June 17 on the sidelines of the G7 summit.
The two sides had made substantial progress in trade talks in recent months, the Indian government said, adding they were committed to an agreement that is "balanced and commercially meaningful".
There was no immediate comment from Greer.
Exports to the US rose marginally to $17.29 billion in April-May from $17.21 billion a year earlier, despite uncertainty over future US tariffs.
New Delhi and Washington reached an initial understanding on trade in February, but uncertainty persists over a US Section 301 investigation into alleged excess industrial capacity and forced-labour concerns involving about 60 economies, including India.
Seeking a competitive edge in US
Under the proposed deal, New Delhi is seeking a competitive tariff edge over other regional exporters to the US market.
In February, the two sides agreed to 18% tariffs on Indian goods in exchange for New Delhi lowering trade barriers and buying more American goods. But a final deal has been clouded by the US Supreme Court ruling invalidating Trump's sweeping global tariffs.
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The ruling effectively removed the US offer to cut tariffs on Indian goods from 25% to 18%, while India is still being asked to make long-term market-access commitments, said Ajay Srivastava, founder of the Delhi-based Global Trade Research Initiative (GTRI).
"The US side of the original bargain no longer exists," he said in a report released ahead of Greer's visit.
GTRI said that Washington was now relying on Section 301 investigations to retain negotiating leverage. Earlier this month, Greer proposed additional tariffs of 12.5% on imports from India, and 53 other economies under a forced-labour probe, though no final decision has been made.
After India, Greer is scheduled to visit Uzbekistan, where he will meet President Shavkat Mirziyoyev and other senior officials to discuss trade ties with the United States.
