Updated

India's government says there's no standoff with the U.S. over the arrest and strip search of an Indian diplomat in New York, appearing eager to defuse a controversy that has threatened bilateral ties.

After meeting with Devyani Khobragade, India's deputy consul general in New York, on Saturday following her return to New Delhi, Indian External Affairs Minister Salman Khurshid downplayed tensions with the U.S.

He said the two countries would sort out their issues.

Khobragade was indicted by a U.S. federal grand jury on accusations that she exploited her Indian-born housekeeper and nanny, allegedly having her work more than 100 hours a week for low pay and lying about it on a visa form. She denies the charge.

She was allowed to return home in an apparent compromise with India.