Both India and US have resolved their differences regarding equal market access for their products and would soon sign a trade agreement.
"The minister (commerce minister Piyush Goyal) had gone to the US with the aim to iron out differences. His meeting with (US Trade Representatives) Robert Lighthizer on Wednesday, in this regard, was fruitful," a senior government official told Moneycontrol.
Trade tensions between the two nations surfaced after India demanded exemption from high duties imposed by the US on certain steel and aluminium products. India has also demanded the resumption of export benefits to certain domestic products under their Generalised System of Preferences (GSP), greater market access for its products from sectors, including agriculture, automobile, auto components and engineering.
A number of contentious issues between the two nations have been resolved and would and that would be reflected in the trade package that both the countries are working on, the official said.
"The final contours are still been worked upon. But both the countries will reach an understanding based on equitable market access, that is for certain," the official said.
A high-powered US delegation is expected to visit India in the coming weeks to give a final shape to what is being described as an initial trade package, which will eventually pave the way for a major trade pact between the two countries, the official said.
Last month, India and the US failed to announce a limited trade deal in New York during the meeting of Prime Minister Narendra Modi and President Donald Trump, due to still prevailing differences over the package including access Washington has sought to Indian markets for medical devices, such as stents and knee implants, information and communications technology (ICT) products and dairy products with the removal of price caps.
Trade tensions between India and the US have been rising with President Donald Trump championing his 'America First' policy, complaining that tariffs imposed by New Delhi on American products were "no longer acceptable" to his country.
In October, Finance Minister Nirmala Sitharaman, during a lecture at Columbia University's School of International and Public Affairs in the US, had said trade negotiations between India and the US were going well and will conclude sooner than expected.
"I think the trade talks would conclude sooner. The talks are going on very well. Yes, we couldn't conclude it before the Prime Minister's visit (to the US) happened. But both sides are engaged with all commitment," Sitharaman had said.
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