In a ray of optimism for Indian exporters, Chief Economic Advisor (CEA) V. Anantha Nageswaran on Thursday said a solution to the India-US tariff issues is likely to be arrived in the next 8-10 weeks.

Addressing a session organised by the Bharat Chamber of Commerce here, Nageswaran said that conversations are already going on between the two governments to end the deadlock.

“My hunch is that in the next eight to 10 weeks, we will likely see a solution to the penal tariff imposed by the US on Indian goods,” he told the gathering.

Nageswaran indicated that the India-US talks are underway to also reduce the reciprocal tariffs from 25 per cent to about 15 per cent.

The additional 25 per cent tariff on Indian imports came into effect from August 27 owing to New Delhi purchasing Russian oil -- taking the total tariffs on the Indian goods entering the US to 50 per cent.

On a question regarding the call between Prime Minister Narendra Modi and US President Donald Trump on PM Modi's 75th birthday, Nageswaran said he hoped the trade stalemate would be resolved soon.

"I think the conversations are going on, and as I said earlier, I hope that this will be resolved soon," he told IANS on the sidelines of the event.

Meanwhile, India and the US have decided to intensify efforts to achieve an early conclusion of a mutually beneficial trade agreement (BTA).

A team of officials from the office of the United States Trade Representative, led by Chief Negotiator, India-US Bilateral Trade Agreement negotiations, Brendan Lynch, arrived in India this week.

They held discussions on India-US trade ties, including the India-US Bilateral Trade Agreement, with a team of Indian officials, led by Special Secretary, Commerce, Rajesh Agrawal.

According to a statement issued by the Commerce and Industry Ministry, “Acknowledging the enduring importance of bilateral trade between India and the US, the discussions were positive and forward looking covering various aspects of the trade deal. It was decided to intensify efforts to achieve an early conclusion of a mutually beneficial Trade Agreement”.

According to Commerce Ministry sources, trade discussions are going on at several levels. There is a positive frame of mind on both sides while approaching trade issues.

Lynch's visit came as expectations of a trade deal were boosted by positive messages from Trump and PM Modi.