India, US in early stages of discussion for incredible trade deal: Trump

US President Donald Trump on Monday said that India and US are in early stages of discussion for an "incredible trade agreement" to reduce barriers of investment and the two countries will make "very, very major... among the biggest ever-made trade deals."

Addressing a massive gathering during the 'Namaste Trump' event held in his honour at Motera stadium here, Trump termed Modi a "tough negotiator" and said the world looks forward to even more rapid improvement to India's business environment under his leadership.

With Modi by his side on the dais, Trump said Modi wants to improve the business environment and was doing it at a record pace. He said the two leaders will discuss their economic ties during their talks in New Delhi on Tuesday.

He expressed optimism of reaching a fantastic deal that is "good even great" for two countries.

"Over the course of my visit, Prime Minister Modi and I will also discuss our efforts to expand the economic ties between our two countries. We will be making a very, very major, among the biggest ever made trade deals. We are in the early stages of discussion for an incredible trade agreement to reduce barriers of investment between US and India and I am optimistic that working together, I and PM can reach a fantastic deal that is good and even great for both our countries. Except that he is a very tough negotiator," Trump said.

He said a booming America is "great" for India and the world and the United States under his leadership has had "greatest economy ever in the history of the United States".

"Since my inauguration, the commerce between our two nations has increased by more than 40 per cent. India is now a major market for American exports and the US is India's largest export market. A booming America is a great thing for India and it is great for the world and that is why we are so happy to announce that we have had greatest economy ever in the history of the United States," he said.

"In America, we have proven that the best way to attract jobs and opportunity is to reduce burdens on business, knock down barriers to new investment and eliminate unnecessary bureaucracy, red tape regulation and taxes," he added.

He said Prime Minister Modi has already made significant reforms.

"The world looks forward to even more rapid improvement to India's business environment under his leadership. He wants to do it and he is doing it at a record pace," he said.

Tensions on trade front had emerged in June last year after Trump revoked preferential trade privileges in response to which India imposed tariffs on 28 US products, including almonds and apples. Despite several meetings, trade negotiators of the two countries are yet to finalise on a deal.

The US officials have expressed concern over "India's protectionist policies."

Trump, who follows an "America First" approach, has been vocal on the issue of tariffs. India has denied that it is a high-tariff nation.