Singh was optimistic after their talks at the White House that the United States would remove restrictions on access to American technology to expand India's nuclear power industry for generating electricity.

"Today, we announce the completion of the Next Steps in Strategic Partnership," Bush said at a joint press conference with Singh, referring to a 2001 signed framework pact aimed at boosting bilateral ties.

"Completing this partnership will help us further enhance our cooperation in the areas of civil nuclear, civil space and high-technology commerce," Bush said.

The two countries launched a dialogue last year under the pact to forge non-military nuclear cooperation but there has been no major breakthrough.

The United States had placed sanctions on India after its second round of nuclear tests in May 1998, but agreed after the September 11, 2001 attacks to waive those and other sanctions in return for support in the war on terrorism.

India is not a party to the Nuclear Nonproliferation Treaty. US law bars export of technology that could aid a nuclear program to any country that has not signed the treaty.

Details of an agreement on civil nuclear energy cooperation were expected to be released in a joint statement later Monday, capping discussions over the last seven weeks, Undersecretary of State for Political Affairs Nicholas Burns told a White House media briefing.

"This is, for the United States, one of the most important visits of the year because the president and prime minister were able to agree on a new global partnership between India and the United States," Burns said.

"We've never had a relationship in nearly 60 years with India like the one we have now established," he said.

Bush did not touch on India's bid for a permanent seat in the UN Security Council but Burns said that while India "has a perfect right to apply for membership," Washington "at this point is only supporting Japan."

Aside from nuclear cooperation, Burns said, the partnership includes initiatives to promote democracy, and fight the scourges of terrorism and HIV/AIDS.

The two leaders also Monday launched a trade forum designed to develop still-meagre commercial relations.

The United States is India's largest trading partner, but India ranks only 22nd among US export destinations.

Bush and Singh on Monday stressed the need for civil nuclear cooperation between the world's two largest democracies.

The US leader said that cleaner energy resources including nuclear power were vital for the future of both economies, which had begun an energy dialogue to find ways to "work together in this important area."

Singh said they discussed the "importance of ensuring adequate energy and affordable supplies at a time when oil prices remain high.

"Both of us recognize that civilian nuclear energy has a greater role in meeting global energy demands," he said.

Asked whether the summit talks had led to removal of restrictions on India's access to American nuclear technology, Singh said, "This issue has been addressed in a manner which gives me great satisfaction.

"And I thank the president for his personal role and interest in facilitating a solution to this complex problem."

Singh arrived in Washington Sunday on a four-day trip with all of the trappings of a state visit.

As US and Indian flags fluttered together over Pennsylvania Avenue outside the White House, Bush and Singh shook hands before the talks and stood in the sweltering Washington heat as a US Army band played their respective national anthems.

Singh receives a rare honor on Tuesday when he addresses a joint session of the US Congress, something only a handful of foreign leaders have done since Bush took office in January 2001.

India has had an uneasy relationship with the United States since independence in 1947 as it sought a neutral foreign policy during the Cold War and bought arms from the Soviet Union while Washington supplied Pakistan.

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