Beyond this threshold, imported industrial goods would attract the regular duties, Bloomberg reported.

The offer was made by Indian trade officials visiting Washington late last month to expedite negotiations on a bilateral trade deal expected by fall this year, the report said.

The two countries are focusing on specific sectors in an effort to secure an early trade agreement before the 90-day pause on U.S. President Donald Trump's retaliatory tariffs comes to an end.

Asian economies such as South Korea, Japan, and India are looking to secure interim trade agreements with the U.S. administration.

India, which has been called a "tariff king" by Trump, has already taken steps to reduce tariffs on American goods. It has slashed tariffs on bourbon whisky to 100% from 150%, and reduced levies on luxury cars, machinery and solar cells.

India does not plan to retaliate against Trump's 26% tariffs on imports from the world's fifth-largest economy amid ongoing talks for a deal.