India is engaged in trade talks with the United States after Washington imposed a 25% tariff on New Delhi, a move that could impact about $40 billion worth of the South Asian country's exports, an Indian government source with knowledge of the trade discussions told Reuters on Friday.

US President Donald Trump stirred debate on Saturday by suggesting that India had stopped importing Russian oil — a move he called a "good step." However, Indian officials and oil sector sources say there is no such halt in place and that purchases remain fully legal under international norms.