Bush said in a joint statement with the visiting Singh after talks here that he would "work to achieve full civil nuclear energy cooperation with India as it realizes its goals of promoting nuclear power and achieving energy security."

The US leader said he would "seek agreement from Congress to adjust US laws and policies" and work with "friends and allies to adjust international regimes" for such cooperation and trade with India.

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 (NPT). US law bars export of technology that could aid a nuclear program of any country that has not signed the treaty.

Bush said nuclear cooperation could include "expeditious consideration of fuel supplies" to the US-built Tarapur nuclear power plant near India's commercial hub of Mumbai.

The Tarapur reactor is reportedly down to its last stock of fuel from Russia, which has expressed its inability to continue the supply because of US restrictions on India.

President Bush, according to the statement, "conveyed his appreciation" to Singh over Indias strong commitment to preventing proliferation of weapons of mass destruction and said that "as a responsible state with advanced nuclear technology, India should acquire the same benefits and advantages as other such states."

Singh, who arrived in Washington Sunday on a four-day trip with all the trappings of a state visit, said his country would agree to "assume the same responsibilities and practices" as other leading nations with advanced nuclear technology.

They included separating civilian and military nuclear facilities and programs in a phased manner and placing its civilian facilities under safeguards imposed by the International Atomic Energy Agency (IAEA), the global nuclear watchdog.

Singh also pledged to maintain India's moratorium on nuclear testing.

The US-India agreement "does not mean that US is now recognizing India as a nuclear weapons state," said Undersecretary of State for Political Affairs Nicholas Burns. "That's a separate matter. India is not part of the NPT."

A senior US administration official said the recognition issue was raised by India but "we said no, we couldn't do that, given the fact that they didn't adhere to the NPT.

"We hope at some point they may do that."

The two leaders agreed Monday on a "new global partnership" that aside from fostering nuclear cooperation included initiatives to promote democracy, and fight the scourges of terrorism and HIV/AIDS.

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

The two leaders also Monday launched a trade forum designed to develop still-meagre commercial relations between the world's two biggest democracies.

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

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."

But Bush emphasized that bilateral relations had "never been stronger, and it will grow even closer in the days and years to come."

As the US leader welcomed Singh to the White House, US and Indian flags fluttered together over Pennsylvania Avenue outside.

They 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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