Softening its stand on the US offer, India on Thursday described the American proposal to reduce its farm aid as a "good sign" and hoped developed nations will make similar moves in other areas for reaching a breakthrough in WTO talks.

"I was really optimistic when I heard about this 15 billion dollars. The fact the movement has started is a good sign," Commerce and Industry Minister Kamal Nath told reporters.

Nath, who rejoined the key trade ministers for resolving the contentious issues of tariff reduction and a cut in farm subsidy, said that the other developed countries should also move forward. "I am looking forward to a similar move by developed countries in other areas also."

While Nath commended the American offer later in the day stating he was "optimistic" on the outcome of the five-day meet, India had earlier expressed its displeasure over the cuts proposed by US Trade Representative Susan Schwab.

The US on Wednesday agreed to cut its agriculture subsidies to 15 billion dollar per year from its earlier offer of 17 billion dollar.

"It is hardly an offer when their applied subsidy is seven billion dollars," Nath had said earlier.

However, he maintained that his tough stand on not compromising on seeking adequate protection for small and marginal farmers against cheap imports.

"Special Safeguard Mechanism are extremely crucial for closure of the deal," Nath said.

Commenting on Special Safeguard Mechanisms (SSM), Nath said that it is not a market access barrier. "SSM are extremely important and crucial at least where India is concerned to the closure of this deal."

While India welcomed the American offer on farm subsidies, it maintained its strong opposition on limiting flexibilities in industrial goods.

"All developing countries must protect their infant and small industries and if that is the deal breaker, so be it," Nath said.

"Our offers will depend on what is put on the table by everybody else. Based on how much we are getting we will be giving," he added.

On services he said, "We have to see there is correction in the domestic regulation as these lie at the heart of negotiations in the services."

"We consider the next three to four days are crucial in the engagement, we will have at the multilateral level, bilateral and green room and I hope we can make progress towards completion of this round by the end of this year," Nath said.