Industry body FICCI on Monday welcomed the recent easing of trade tensions between the US and China.

The encouraging signals from the US President Donald Trump and Chinese President Xi Jinping's meeting in Argentina have already initiated the process that, in all probability, will succeed in defusing the impending global trade war which threatened to impact world trade in a major way, FICCI said in a press statement.

The escalating tensions between the two major trading nations in the world has been a cause of deepening concern in terms of its adverse impact on the financial markets across the world and also the economy, it added.

"The very fact that no additional tariffs will be imposed by the US and both the two sides will engage in negotiations, is a big relief for other trading nations, including India. Also, with the G20 nations agreeing for the required reforms in the multilateral trading platform, WTO" said Rashesh Shah, President, FICCI.

India's role in this exercise will be critical in bringing together all the countries to the discussion table for finding a workable solution, he added.

"As the country will now be hosting the G20 summit in 2022, it can play an important role in helping the positive results of the Argentina meeting deliver concrete results, going ahead," he said.