Indian flag and the word "Tariffs" are seen in this illustration taken August 27, 2025. REUTERS/Dado Ruvic/Illustration/ File Photo

By Manoj Kumar

NEW DELHI (Reuters) -Trade discussions between Indian and U.S. officials on Tuesday were "positive" and "forward-looking", New Delhi said, after President Donald Trump struck a more conciliatory tone following punitive tariffs on India over its Russian oil purchases.

A U.S. delegation led by Brendan Lynch, Assistant U.S. Trade Representative for South and Central Asia, met Indian trade officials headed by Chief Negotiator Rajesh Agrawal in New Delhi.

“It was decided to intensify efforts to achieve early conclusion of a mutually beneficial Trade Agreement,” India’s commerce ministry said in a statement, without giving details.

Talks covered bilateral trade ties, including a possible India-U.S. trade deal, it added.

Both sides are now expected to hold a formal sixth round of trade negotiations.

However, it was not immediately clear whether New Delhi would meet Trump administration's demand to cut Russian oil purchases, or open its agriculture and dairy sector for the U.S. companies, a major demand in the negotiations.

Trump last month imposed a 25% punitive levy on Indian imports from August 27, doubling overall tariffs to 50%, as part of Washington’s pressure campaign on Moscow over its invasion of Ukraine.

A planned U.S. delegation visit to New Delhi from August 25-29 was cancelled after talks stalled, with India resisting U.S. demands to open its vast farm and dairy markets.

India’s exports to the U.S. fell to $6.86 billion in August from $8.01 billion in July, trade ministry data showed on Monday.

Exporters have warned the full impact of higher tariffs would be felt from September, once the new duties took effect.

(Reporting by Manoj Kumar, writing by Hritam Mukherjee; Editing by Kevin Liffey and Ros Russell)