India is engaged in trade talks with the United States after Washington imposed a 25% tariff on New Delhi, a move that could impact about $40 billion worth of the South Asian country's exports, an Indian government source with knowledge of the trade discussions told Reuters on Friday.

Following are the key issues that appear to have derailed the trade talks between the U.S., the world's largest economy, and India, its fifth largest: India has resisted U.S. demands to open its agricultural and dairy markets,

Amid Donald Trump's offensive, govt on Thursday dug its heels on trade, saying it will not compromise on the interests of farmers.Commerce and industry minister Piyush Goyal's statement in Parliament reflected the stalemate between India and the US over the sensitive issue of farm and dairy sectors.