NEW DELHI : A US trade team that’s currently in India for negotiations has extended its stay, according to people familiar with the matter, in a sign talks are progressing ahead of a July deadline.

The team, which was initially scheduled to hold talks with Indian officials on June 5-6, will now be staying till Tuesday to continue discussions, the people said, asking not to be identified because the information isn’t public. Most of the issues may get finalized within a week, the people estimated.

India and the US are working on a phased trade deal with an early agreement targeted for July, the deadline for implementation of the so-called reciprocal tariffs. At the same time, those tariffs are facing legal challenges in Washington.

Indian Commerce Minister Piyush Goyal described his meeting with US counterpart Howard Lutnick during a visit to the US in May as “constructive.” Earlier this month, Lutnick said he’s “very optimistic” about prospects for a trade deal between the US and India “in the not-too-distant future.”

India was one of the first countries to begin negotiating a trade deal with the US, hoping to avert President Donald Trump’s reciprocal tariffs, which are scheduled to kick in on July 9.