The trade talks between India and the United States resumed here on Tuesday, as US Assistant Trade Representative Brendan Lynch reached Commerce Ministry, amid the thaw in the relations between the two nations.

The India trade negotiators are led by Rajesh Agrawal, Special Secretary in the Department of Commerce.

According to Commerce Ministry sources, trade discussions are going on at several levels and further course of action will be decided after the trade talks with the US Chief Negotiator Lynch.

There is a positive frame of mind on both sides while approaching trade issues. The teams are set to discuss all the pending issues related to the trade deal. Certain issues are in the diplomatic realm where the MEA is also engaged.

Lynch's visit comes as expectations of a trade deal have been boosted by positive messages by US President Donald Trump and Prime Minister Narendra Modi after days of bitter stalemate.

Trump said on a Truth Social post on September 9, that talks were continuing and “I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries”.

Calling PM Modi a “great friend”, he said he would be talking to him.

PM Modi responded to Trump’s post, saying “I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership”.

He added that he was looking forward to talking with Trump.

US nominee to be ambassador to India, Sergio Gor, told a Senate panel considering his nomination last week that India’s Commerce Minister Piyush Goyal was expected in Washington, DC, and he will meet with US Trade Representative Jamieson Greer.

Meanwhile, India's merchandise trade deficit narrowed to $26.49 billion in August from $27.35 billion in July.

Despite global uncertainties and trade policy uncertainties, Indian exporters have done well. It shows that the government's policy has paid off.