"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," he was quoted saying by the Press Trust of India in Calcutta.

Washington offered to step up a strategic dialogue with New Delhi Friday that include military and high-tech cooperation as well as expanded economic and energy cooperation with the aim of making India a major world power by the 21st century.

Mukherjee noted "cooperation in economic and other areas between US and India has increased manifold, but there is so far no defence agreement between the two countries."

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.

However, a US official said his government was prepared to "respond positively" to an Indian request for information on American initiatives to sell New Delhi the next generation of multi-role F-18 combat aircraft.

Beyond the possible sale of fighter planes, the US was ready to discuss the more fundamental issue of defense transformation with India, including systems in areas such as command and control, early warning and missile defense, he added.

India was a Cold War ally of the Soviet Union and maintains close ties with Iran, which the United States accuses of developing nuclear weapons and supporting Middle Eastern extremist groups.

Traditionally, it has bought the majority of its military equipment from Russia, France and Britain, but of late has evinced interest in the military hardware of US defence firms.

The United States and India signed a landmark agreement last January to share advanced technology, including in peaceful nuclear applications.