"But we have struggled with regulatory issues that get in the way of the ease of doing business and market access for American companies and products," said the official.
"Trade has frankly been an area of frustration in the relationship, but the door is open if India is prepared to bring a serious proposal to the table," he said.
Despite intensive engagement with the Government of India for nearly a year, India did not assure the US that it would provide equitable and reasonable access to its market, which led to its termination from the Generalised System of Preferences programme, the official said.
"While we were pleased that the growing US exports to India, largely crude oil and LNG, led to a 7.1 per cent reduction in our bilateral goods trade deficit last year, many structural challenges in our trade relationship have yet to be resolved," said the senior State Department official.
During the just concluded visit of the Foreign Secretary, while the focus was on strategic, defence and regional issues, in particular Pakistan and Afghanistan, but the visiting diplomat is believed to have been conveyed that the ball is in India's court on resolving the trade related issues.
The US is understood to have told India that the Trump administration is willing to review its decision to revoke its GSP privileges to India, if New Delhi comes with a credible proposal to address the market access issues that America has been talking about for nearly a year.
The GSP notification is still within the 60 days period, after which the benefits would formally be withdrawn, it is reliably learnt that the US has told India that it is not too late. But it is unlikely to happen, given that India is now into an election campaign mode, officials on both sides said.
While India argues that it is difficult to take any policy decision at this point of time because of the elections and the model code of conduct, American points out that it has decided to take its decision on revoking GSP privileges only after it exhausted all its options with India.
During talks with India, America is believed to have said that "there are creative ways of solving" all the trade related issues that addressed concerns of both the countries.
For instance, there are creative ways of certifying that the dairy products meet Indian standards, and have believed to have talked about creative solutions to certifying vegetarian cows. Similarly access to high end cell phones can be addressed in a way that does not open up the market to China, Americans are believed to have pointed out.
The United States, it is learnt, had been "extraordinarily clear" since April last year on addressing certain market access issues in the absence of which it reportedly told India that it risked losing GSP privileges.
The US still hopes that the issue can still be resolved before the election and certainly after the elections.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.