"I think we're going to have some very big things to announce... Very big trade deal... We're doing some very big things with India in terms of trade, in terms of manufacturing," President Trump said at the start of the talks with PM Modi.

Calling the talks with President Trump as "wide ranging", PM Modi, in a tweet, said, "We discussed ways to leverage the power of technology, improve defence and security ties as well as issues relating to trade. India stands committed to further deepen economic and cultural relations with USA."

The Prime Minister's bilateral meet with President Trump is crucial as the two nations seek to resolve an ongoing trade dispute. New Delhi had slapped tariffs on 28 US products earlier this month in response to Washington withdrawing its long-standing trade concessions to India on June 1.

The government today said that both leaders had agreed to try and resolve issues related to trade. "It was agreed that trade ministers of both countries would meet on an early date and would try to sort out these issues. Both US Trade Representative Robert Lighthizer and their Treasury Secretary Steven Mnuchin were in the room. Now, we expect an early meeting," Foreign Secretary Vijay Gokhale said at a press conference.

Government sources have told news agency Reuters that India's tariffs are not as high as other developing countries. Commerce and Industry Minister Piyush Goyal has said that the government will not allow trade negotiations to overtake "issues of national interest".

The two leaders also discussed Iran amid rising tensions between the Gulf nation and the United States. While India has stopped buying oil from Iran, one of its top suppliers, complying with US sanctions, New Delhi is worried about the security of its energy supplies.

"On Iran, the primary focus was on how we ensure stability there, as instability affects us in many ways, not just in a matter of energy needs, but also in terms of our large diaspora in Gulf, 8 million Indians in the Gulf and economic interests. The two leaders agreed that they and officials will continue to remain in touch to ensure that the region remains stable; that is in the interest of us and the US," Mr Gokhale said.

The two leaders also discussed Chinese telecoms equipment maker Huawei. "We actually sell Huawei many of its parts," he said. "So we're going to be discussing that and also how India fits in... And we'll be discussing Huawei." Washington has pressed its allies to shun Huawei in their fifth generation, or 5G, networks on security grounds.

"On 5G, we were concerned to bring the focus on how we can leverage our market, our capabilities in design and technology of software, and our desire as to how to make this technology as part of Make in India. PM''s real focus was on Make in India and the potential that this technology has to achieve this goal," Foreign Secretary Vijay Gokhale said.