The officials are meeting on the directions of PM Modi and President Trump.
This came two days after President Trump Donald hit out at India saying its tariff is no longer acceptable to the USA, high-level trade delegation of India and United States began talks in New Delhi.
Top sources told CNBC-TV18 that tariffs, ecommerce and data localisation issues are the main issues that would be discussed.
"The initial talks between visiting officials from the U.S. and their Indian counterparts to break the ice between the two sides started on Thursday".
"We are looking forward to a constructive engagement", Kumar said.
When asked about their expectations from the visit the United States Trade Representative (USTR) spokesperson said, "Since India's election period has now passed, USTR officials are visiting India for relationship-building with Indian government counterparts, including introductory meetings for the new AUSTR for India, Christopher Wilson".
"I think it is important to keep in mind when we engage on this issue that the trajectory of the relationship remains positive, we have to keep in mind the bigger picture and within that big picture try to address all the issues which are on the table", he had added.
A man holds the flags of India and the US while people take part in the 35th India Day Parade in New York August 16, 2015. During their meeting, USTR officials Christopher Wilson and Brendan Lynch will seek greater market access for American companies in order to bridge this trade deficit. The move came on the back of higher USA tariffs on Indian steel and aluminium.
The United States would seek a rollback of some of those tariffs, and India would in return seek better access to the USA market for Indian farm products, said the Indian official who is aware of the agenda for discussions.
While tariffs on a number of products such as smartphones, other IT and telecom items and Harley Davidson motorbikes are one of the focus issues for the U.S. for the talks, the other two are e-commerce rules and data localisation.
On its part, India had imposed retaliatory tariffs on 25 American goods, less than two weeks after the Trump administration announced an end to the preferential trade treatment for India.
For India, the priority would be to seek exemptions from USA import duty of 25 percent and 10 percent on steel and aluminium respectively. Energy imports from Iran and defence imports from Russian Federation are also likely to figure in the discussions. The US-India Strategic Partnership Forum has predicted trade will go up to $238bn by 2025.
This was the first deliberations at official level on trade issues after the meeting of Prime Minister Narendra Modi with the US President in Japan, on the sidelines of the G20 summit in Osaka in June.