NEW DELHI (Reuters) -India and the U.S. have finalised terms of reference for talks over the first segment of a bilateral trade deal, a trade official said on Friday, adding that there was a possibility of a "win-win shape and form" to the deal in the next 90 days.

The U.S. is India's largest trading partner and two-way trade between the countries surpassed $118 billion in 2023-24.

Reuters reported on Thursday that India wanted to move quickly to clinch a bilateral trade deal with the U.S. following President Donald Trump's decision to pause reciprocal tariffs for dozens of countries, including India.

Trade engagements between the countries will continue virtually and regularly, the official said.

"We are far ahead in trade talks with the U.S compared to other countries... there are lots of possibilities in 90 days," said the official, who did not want to be named because of the sensitivity of the issue.

Trump's administration had announced a 26% tariff on Indian goods last week, and India had said it did not plan to retaliate against the levies.