India and the US are holding a day of trade talks, sparking hope that stalled negotiations on a bilateral agreement will soon resume.

A team led by US trade negotiator Brendan Lynch is in Delhi to meet officials from India's commerce ministry.

India said the meeting doesn't mark the start of the next round of negotiations, describing it as a "discussion" about "trying to see" how an agreement can be reached.

Negotiations on a trade deal had stalled after US President Donald Trump imposed a hefty 50% tariff on Indian goods, partly as a penalty for Delhi's purchase of Russian oil and weapons. India has defended its decision, citing domestic energy needs, and called the tariffs "unfair".

The hefty duties, along with strong criticism of India by Trump and his key officials, have led to a swift and surprising deterioration in ties between the allies.