India, US ink 10-year defence pact

"The United States and India have entered a new era," a statement said after the signing by US Defence Secretary Donald Rumsfeld and his Indian counterpart, Pranab Mukherjee, who is on a visit to Washington.

"We are transforming our relationship to reflect our common principles and shared national interests," it said of the so-called New framework for the US-India defence relationship" signed at the Pentagon.

The ministers agreed to set up a "defence procurement and production group" to oversee defence trade, as well as prospects for co-production and technology collaboration" and sign deals on military "research, development, testing and evaluation" as well as naval pilot training.

"Today, we agree on a new framework that builds on past successes, seizes new opportunities and charts a course for the US-India defence relationship for the next 10 years," the statement said.

The military pact came three months after the United States unveiled plans to help India become a "major world power in the 21st century" and ahead of a visit by Indian Prime Minister Manmohan Singh at the invitation of President George W. Bush from July 18 to 20.

Singh is scheduled to address a joint meeting of Congress.

House of Representatives Speaker Dennis Hastert said Tuesday that he looked forward to hearing from the visitor "how our two countries can help grow the global economy and make our world safe from those who seek to do us harm."

Washington's move to boost relations between the world's oldest and largest democracies which were on the opposite sides in the Cold War is seen by analysts as part of a strategy to counter the growing influence of China, India's immediate neighbour.

The United States may back India's bid to become a permanent member in the UN Security Council, aside from its already pledged support for Japan, some analysts say.

Mukherjee said the United States could also end its policy of restricting supply of dual use nuclear and space technologies to India, sanctions imposed after India became an undeclared nuclear power.

"I feel there is a possibility of a change," he told reporters.

He said specific areas for cooperation under the new agreement would be subject to negotiations but urged defence companies to study the different defence procurement procedures of the two countries to achieve quick results.