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The Indian side and the US are holding a full-day round of bilateral talks, raising expectations that halted discussions on a mutual agreement may soon resume.

A delegation headed by a senior US trade representative is presently in Delhi to discuss with representatives from India's commerce department.

Indian authorities clarified that the meeting does not represent the beginning of a fresh round of negotiations, characterizing it instead as an informal exchange aimed at finding paths to secure a bilateral agreement.

Bilateral negotiations had earlier halted after the US government introduced substantial tariffs on India's goods, partly in reaction to India's purchase of Russia's energy and military equipment. India has justified its position, citing national security requirements, and termed the tariffs disproportionate.

These tariffs, along with strong comments from American officials, have led to a swift deterioration in ties between the two traditional partners.

India is a significant supplier of goods such as garments, shrimp, and jewellery to the US, and the tariffs have already impacted local industry and livelihoods.

As a result, Tuesday's discussions are being attentively watched by observers and businesses alike.

As stated by a key Indian negotiator, the meeting is designed to discuss avenues for achieving a bilateral agreement and is not officially part of the scheduled talk rounds.

A prior session of talks was canceled last period following the duty announcement and India's refusal to halt buying Russian oil.

However, in recent days, hopes have increased as US representatives have taken a more flexible stance, and India has reiterated that talks are still proceeding.

One American commerce official remarked that India is moving to the table and expressed optimism about the results.

This same official had earlier been critical of India's policies, but latest comments suggest a shift in approach.

Additionally, a social media exchange between the US and Indian leaders last week reflected optimism regarding ongoing discussions.

The US president stated that the two nations were working to resolve bilateral barriers, and the Indian prime minister echoed the optimism, referring to the two nations natural partners.

A designated for the position of US envoy to India also expressed optimism, stating that the bilateral agreement could be resolved within weeks.

He noted that the two parties were not far apart and were currently negotiating the specific details of the deal.

Still, key disagreements persist, particularly in sectors such as agriculture and dairy.

The US has long pushed for increased access to India's agricultural sector, seeing it as a significant untapped market.

India, however, has consistently protected its farm industry, highlighting reasons related to self-sufficiency, rural livelihoods, and the interests of millions small farmers.

Recently, a senior US commerce official questioned India's protective policies, wondering why a country of 1.4 billion people would not import US farm goods.

Indian analysts, however, have maintained that India should not give in to outside pressure to liberalize its farm market, stressing the priority of economic self-reliance and nutritional stability.