The U.S. and India have finalized a trade deal on Monday after months of negotiations, steadying a relationship that had plummeted to its lowest point in decades.

Indian officials moved to counter concerns that the country may have made too many concessions to secure lower tariffs from the US after a surprise trade deal announced by President Donald Trump this week.

The US and India on Saturday announced that they have reached a framework for an interim trade agreement, under which America will reduce tariffs on India to 18 per cent, according to a joint statement released by the White House and Commerce Ministry.

Indian lawmakers from the ruling coalition praised Prime Minister Narendra Modi for striking a deal with the U.S. to reduce tariffs on Indian goods.

India-US trade deal LIVE: Piyush Goyal said that under the leadership of Prime Minister Narendra Modi, India had reached a framework for an interim agreement with the US that would “open a $30 trillion market for Indian exporters.

PM Modi further noted that the India-US interim trade deal framework strengthens the government's flagship 'Make in India'.

India’s trade deals with the European Union (EU) and United States have stabilised the world order, Prime Minister Narendra Modi said in a speech in Rajya Sabha.

Prime Minister Narendra Modi said, “Great news for India and USA!”

This will be PM Modi’s third visit to Malaysia, and officials say it is designed to take stock of the expanded partnership announced last year