The agreement was reached at the third strategic dialogue between US Secretary of State Hilary Rodham Clinton and Indian Foreign Minister Somanahalli Mallaiah Krishna in Washington DC on June 14.

The US expressed satisfaction with the preliminary agreement signed between Westinghouse Electric Company and the Nuclear Power Corporation of India, which paves the way for construction of the new Westinghouse reactors in India.

Clinton said she considered the signing a significant step toward increasing cooperation and implementation of the bilateral Civil Nuclear Agreement signed in 2008. 

Economically, Clinton said two-way trade and investment may surpass US$100 billion this year, a 40 percent increase since 2009. Washington also expects New Delhi to reduce tariff barriers in the retail sector. 

Regarding national defense cooperation, the US Secretary of State said defence trade between the two countries has reached more than US$8 billion over the past five years, making a giant leap forward.

Acknowledging positive outcomes of the talks, Krishna said the two countries have built friendship, goodwill, confidence and mutual trust in their strategic ties. He revealed that India plans to invest US$1 trillion in its infrastructure over the next five years, offering plenty of opportunity for US companies.

Results from the meeting have reflected the broadened US-India ties and help realize Washington’s wish to make bilateral relationship one of the most important partnerships in the 21st century.

Clinton expressed her hope that New Delhi will cooperate to advance its ties with the US. Robert Blake, Assistant to US Secretary of State for South and Central Asian Affairs, says the US has invested a great deal of time and energy to boost ties with India, which the US believes will become a world power.

Analysts say it’s no coincidence that the US-India ties are as warm as they are now considering that both sides gain great benefits from further cooperation.

Working together with India, the US can protect oil transport marine routes from the Middle East to Japan and the Republic of Korea. It is also an export market for India’s information technology, pharmaceutical products, garments, and automobile spare parts.

India, with a population of 1.2 billion, is considered counter-balanced to China. It relies on ties with the US to access capital and technologies, particularly nuclear and space technologies.

The US-India ties have entered a state of maturity based on shared strategic interests. The third strategic dialogue as part of diplomatic events between the two countries over the past month, and which followed the visits to India by US Secretaries of State and Defence will provide momentum for future US-India ties.