The US and India have announced a breakthrough on a pact that will allow American companies to supply India with civilian nuclear technology.
It came on the first day of President Barack Obama’s visit to India.
The nuclear deal had been held up for six years amid concerns over the liability for any nuclear accident.
Indian Prime Minister Narendra Modi said the nations were embarking on a “new journey” of co-operation, with stronger defence and trade ties.
Mr Obama said that the nations had declared a new friendship.
Security is intense in Delhi, with Mr Obama to be the guest of honour at Monday’s Republic Day celebrations. Thousands of security personnel have been deployed in Delhi.
The nuclear pact had been agreed in 2008 but the US was worried about Indian laws on liability over any accidents.
Now, a large insurance pool will be set up, without the need for any further legislation.
US ambassador Richard Verma said: “It opens the door for US and other companies to come forward and actually help India towards developing nuclear power and support its non carbon-based energy production.”
Read more at BBC News