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The country and the US are holding a lengthy trade talks, sparking hope that stalled negotiations on a bilateral agreement will soon resume.

A delegation led by a American commerce representative is in the capital to engage officials from the nation’s trade department.

The Indian side clarified that the discussion does not signal the start of the subsequent phase of talks, describing it as a "exchange" about "trying to see" how an deal can be reached.

Negotiations on a economic arrangement had halted after the US President enforced significant duties on products from India, partly as a response for India’s purchase of imports from Russia. India has defended its action, citing domestic energy needs, and called the tariffs "unjust".

The significant tariffs, along with pointed comments of the country by the American leader and senior administration figures, have led to a rapid and surprising weakening in ties between the partner nations.

The nation is a significant exporter of products, including apparel, shrimp and gems and jewellery to the US, and the tariffs have already impacted production and jobs.

So the latest round of talks between delegates from each country is being carefully monitored.

"This does not represent an scheduled phase of negotiations but it will definitely be a discussion on the negotiations and on working to understand how we can reach an deal between India and the US," the head of the Indian delegation told national news outlets.

A phase of talks was called off last month following the tariff announcement and the nation’s refusal to stop buying imports from Russia.

But over the last several days, expectations have grown – US administration officials have appeared more flexible, and India has stated that the talks are still proceeding.

On Monday, a United States representative stated: "The nation is engaging. We will observe how this unfolds."

During a digital conversation between the American leader and the nation’s leader, the former said that the nations were "moving forward with discussions to tackle the obstacles" between them. Answering, the Prime Minister echoed the hopeful tone and said the two countries were "trusted partners and natural partners."

A nominee for the next US ambassador to the nation also said that the trade deal "should be settled in the next weeks".

"We aren't that distant right now on the pact. In fact, they're discussing the nitty-gritty of the agreement," he said during a confirmation hearing last week.

But it is yet to be seen how the governments resolve significant disagreements that had earlier blocked a economic pact from being finalized.

Farming and dairy, in especially, are significant sticking points.

For an extended period, American officials has advocated increased entry to India's farm sector, seeing it as a substantial untapped market. But India has fiercely protected it, citing food security, incomes and the interests of millions of small farmers.

Last week, a United States representative repeated his earlier concerns of India's strong protections, asking why a country of 1.4 billion people wouldn't "acquire one measure of US corn".

But local analysts have stated that India shouldn't yield to pressure to expand its farm sector, keeping independent policy and crop supplies in mind.