Indian and U.S. are holding high-level talks this week, aiming to finalise tariff cuts in sectors such as farm and automobiles as part of an interim deal, two government sources said, with an announcement likely later this month.

India is also seeking a commitment from US that it will completely eliminate tariff on labour-intensive goods like apparel, leather, footwear, gems and jewellery, Business Standard reported.

India and the U.S. are in final talks to cut tariffs on key sectors like agriculture and autos, aiming to announce an interim trade deal.