'India buoyed by US arms sale offer'

Indian Prime Minister Manmohan Singh has been circumspect in his reaction to Washington's offer to discuss defence transformation with India and assist it "become a major world power in the 21st century".

"As far as India is concerned, there is an offer. But the terms and conditions, we do not know. It is premature for me to say. We will discuss with (Washington)," Singh said late Monday.

Analysts, however, said Washi-ngton's statement marked a historical shift in its relations with India and that its significance is not lost on the leadership in New Delhi.

"Even India, with a long tradition of making foreign policy self-goals, will find it hard to say 'no' to the extraordinary offer the Bush administration has put on the table -- a promise to assist it in becoming a world power in return for resumption of arms sales to Pakistan," political commentator C. Raja Mohan said.

"As India finds itself at a critical moment in its recent effort to transform its security situation and alter its global standing, it will be compelled to take a long hard look at the US proposals," Mohan wrote in an article for the Indian Express newspaper.

The US proposal came even as it announced plans to beef up the military of New Delhi's nuclear rival, Pakistan, by selling it an undetermined number of sophisticated F-16 combat planes.

In his official reaction to the sale of jets to Islamabad, Singh expressed "great disappointment", saying the decision could have "negative consequences for India's security environment".

But Indian Defence Minister Pranab Mukherjee welcomed the US offer to boost New Delhi's missile defence and other security initiatives, including the sale of military equipment.

"Naturally, we will discuss them (the proposals) and if military aircraft and other weapons, needed for our national interest, are available from the US, we will certainly consider them," Mukherjee said.

A US official said Washington was prepared to "respond positively" regarding the sale to India of the next generation of F-18 combat aircraft, and the more fundamental issue of defence transformation. This would include areas such as command and control, early warning and missile defence.