The stakes are high, with the United States and India counting on one another as indispensable partners in their competition with China.

Indian shares were muted in early trades on Tuesday, with benchmark indexes near six-week lows, as concerns over a delay in signing a trade deal with the United States and sustained foreign outflows hurt demand.

The prime ministers of Britain and India have sealed a major trade agreement that will reduce tariffs on products like Scotch whisky and Indian spices.

The White House altered the plan at the last minute regarding India. Attempts are being made to persuade Trump to rethink his decision. However, at present, negotiators are returning to the negotiation table to resume discussions and, if necessary, completely restructure the agreement.

India's equity benchmarks were set for a muted open on Tuesday amid caution over a delay in interim trade deal with the United States, sustained foreign outflows and weak earnings.

Indian negotiators aim to secure trade agreements benefiting MSMEs, similar to the India-U.K. CETA provisions, in talks with the U.S. and EU.

Prateek Agrawal, MD and CEO, Motilal Oswal AMC told NDTV Profit that the India-US trade deal should be a 'win-win' for both sides. He added that the deal may open a large export market for India.

Indian shares fell on Monday as financials and IT declined due to weak results from Kotak Mahindra Bank and Tata Consultancy Services' layoff plans, respectively, and as uncertainty over trade talks with the U.